Ericsson accused of violating bribery agreement with Justice Department

Texas News Today

According to the Swedish telecommunications company, US prosecutors have determined that Ericsson AB violated the terms of a $1.06 billion agreement signed in 2019 for bribery claims in five countries.

The Stockholm-based company has been notified by the US Department of Justice that it has breached contract because it has not provided specific documents or information related to the settlement.

Ericsson said he will continue to work with the Justice Department and will have the opportunity to respond to the Justice Department’s letter.

The company signed a contract with the Justice Department in 2019 to resolve bribery allegations, which officials said took place between 2000 and 2016 in Djibouti, China, Vietnam, Kuwait and Indonesia.

The deal, known as the Deferred Prosecution Agreement, filed criminal charges for conspiracy to violate the Foreign Corrupt Practices Act, provided Ericsson began some reforms and continued to work with prosecutors for three years. were stopped.

A subsidiary, Ericsson Egypt Limited, also pleaded guilty to complicity and breach of restraint law.

Ericsson has also signed a parallel agreement with the US Securities and Exchange Commission over allegations of using third parties to bribe officials in Saudi Arabia, China and Djibouti. The penalty imposed on the basis of two transactions was the highest ever imposed for an FCPA violation.

The Justice Department can issue a public warning about the consequences of a breach of the terms of the deferred prosecution agreement, but such violations are rare.

The letter to Ericsson will be sent in early October after a senior Justice Department official said breaching such a settlement could result in more severe penalties than originally agreed.

“We need to make sure that those who benefit from such an arrangement abide by their responsibilities,” said John Carlin, a senior member of the deputy attorney general’s office. “If not, we should expect dire consequences.”

Ericsson is a Huawei Technologies Company. The US has emerged as one of the champions in the competition for Chinese companies to lead the development of 5G technology around the world.

US officials argue that Huawei and other Chinese companies pose a risk to US national security because of their close ties with the Chinese government and possible backdoor access they can provide to their telecommunications networks. .. Huawei has denied allegations of using its technology to conduct spying.

write in Dylan Tokar ([email protected])

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