The accusations
In 2013, the US Securities and Exchange Commission (SEC) initiated an investigation into suspected violations of the United States Foreign Corrupt Practices Act (FCPA).
Ericsson was accused of, among other things, paying bribes in business contexts in connection with transactions in China, Djibouti, Indonesia, Kuwait, Saudi Arabia and Vietnam.
The revelations
In the spring of 2014, Daniel Öhman and Bo-Göran Bodin, reviewing reporters at Sweden's Radio Ekot, were able to reveal suspicious bribery links with Ericsson.
- Looking back in time, Ericsson had a secret cash register that was used to pay out money to their agents around the world. What we have revealed over the years is that they have used this money for suspected bribes to power holders in several countries, says Daniel Öhman.
One case was that the telecom giant should have paid SEK 100 million to a Monaco intermediary that would help them win an order worth billions on a military radar system. Several former Ericsson executives were indicted for crimes after the disclosures.
negotiations
Ericsson began negotiations with the SEC and the US Department of Justice (DOC) on a settlement of violations of the country's corruption laws.
On September 26, 2019, the telecom giant announced that it will allocate SEK 12 billion for expected fines and other costs in connection with the investigation. The share fell two percent on the Stockholm Stock Exchange, but recovered.
Settlement
Late Friday night, Swedish time, the US Department of Justice announces in a press release that a settlement has been reached with Ericsson. The telecom giant will pay more than a billion dollars, around ten billion SEK, to US authorities.
Ericsson CEO Börje Ekholm has called the bribe stores a sad chapter in the company's history.
"I assure that this will never happen again," he said.