The Swedish telecommunications equipment group Ericsson has agreed to pay more than $ 1 billion (about 900 million euros) as part of an amicable agreement with the US Department of Justice, which accuses of paying bribes in five countries.
"The corrupt behavior of Ericsson has involved senior executives, for more than 17 years and in at least five countries, all in order to increase its profits", denounced Brian A. Benczkowski, the head of the criminal affairs department.
The group is going to have to pay $ 520 million under the agreement to the department and $ 540 million to the US stock exchange gendarme in a case-related case.
In a brief statement, published on its website, Ericsson simply recalls that it has provisioned $ 1.2 billion to pay this fine and refuses to comment further. The group's Egyptian subsidiary pleaded guilty, the statement said.
"Only money matters"
According to the agreement reached with a New York judge, Ericsson committed to pay $ 520,650,432 within ten working days and agreed to establish an independent observer for three years to ensure that he respects the terms well.
According to his own confession, from early 2000 until 2016, the Swedish group has set up a sophisticated system to pay bribes without appearing in their accounts. The agreement covers illegal activities in five countries:
- In Djibouti, Ericsson paid $ 2.1 million in bribes to senior executives in the country between 2010 and 2014 to win a contract worth some € 20.3 million;
- In China, tens of millions of dollars in various gifts were paid between 2000 and 2016, again to win contracts;
- In Vietnam, between 2012 and 2015, $ 4.8 million was paid to a consulting firm to create a slush fund and then pay money to people who were not normally eligible to receive it. ;
- The same mechanism was used in Indonesia to fuel a $ 45 million slush fund;
- In Kuwait, it is the promise of $ 450,000 that enabled the Swedish group to win a $ 182 million contract.
"Thanks to black-boxes, bribes, gifts and corruption, Ericsson has been active in telecommunications with the following principle: "only money matters" ", accused New York attorney Geoffrey S. Berman. Ericsson has agreed to continue to cooperate with the law.
