Ericsson sets $ 1.2 billion to pay corruption fine
The company must cancel this amount after an investigation conducted by the Securities and Exchange Commission (SEC) for a possible violation of the Corrupt Practices Act
The technology and telecommunications company Ericsson prepared approximately 1.2 billion dollars to face a possible fine in the United States, according to a statement.
The firm is being investigated in the United States by the Securities and Exchange Commission (SEC) and the Department of Justice for a possible violation of the Foreign Corrupt Practices Act. Specifically, regulators are focusing on certain practices that the company carried out in the first quarter of 2017 in China, Djibouti, Indonesia, Kuwait, Saudi Arabia and Vietnam.
The amount will be accounted for within the “other operating expenses” item in the accounts for the third quarter, so net revenues will be affected.
Ericsson acknowledged that in those six countries there were “gaps” in internal controls that allowed certain employees to skip those safety tracks for “illegitimate purposes.” The company said that appropriate disciplinary measures have already been taken, including dismissals in cases where it was appropriate.
“In the last two years we have made significant investments in our ethics and compliance program, including our research capabilities, and we have taken action against employees who have betrayed our values and standards”, explained Ericsson’s president and CEO, Börje Elkholm.
K. Tovar
Source: dpa
