The US Department of Justice (DoJ) told Ericsson it had breached the agency’s obligations by failing to provide certain documents and factual information relating to a settlement it agreed in 2019.
Ericsson issued a statement noting it received notice from the DoJ regarding a breach of duties under a Deferred Prosecution Agreement (DPA), although the vendor added the investigation was at an early stage and it was unable to predict the outcome.
In December 2019, Ericsson agreed to pay $1 billion to the US government to settle a corruption investigation, [1] after admitting to paying millions in bribes and falsifying its books between 2000 and 2016.
The company said it had failed to implement reasonable accounting controls as part of a corruption campaign spanning Djibouti, China, Vietnam, Indonesia and Kuwait.
In 2020, the company announced it had begun three years [2] of compliance monitoring, appointing a third party to ensure adherence to the terms of the settlement made with US authorities.
During the period, it was required to implement internal accounting controls and asset checks to ensure accurate bookkeeping, as well as maintain an anti-corruption programme internally.
Ericsson’s statement regarding the breach did not provide detail as to where it had failed. The company did state it would have the opportunity to respond in writing to explain the nature and circumstances of the breach, and the actions it had taken to “address and remedy the situation”.
It also said it would continue cooperating, consistent with the terms of the DPA.
[1] https://www.mobileworldlive.com/featured-content/home-banner/ericsson-pays-1-1b-to-settle-foreign-bribery-case
[2] https://www.mobileworldlive.com/featured-content/home-banner/ericsson-begins-penance-for-us-bribery-charges
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