Electronics Company Ericsson May have Financed IS with Bribe Payments in Iraq

Electronics company Ericsson may have paid bribes in Iraq. An internal investigation has uncovered unusual payments in Iraq into 2018, the Swedish company announced on Tuesday evening. The Ericsson shares lost 8.5 percent on the stock market on Wednesday.

 

The investigation, which covers the period from 2011 to 2019, has revealed indications of possible corruption. This concerns money transfers to unknown recipients and payments to suppliers without a description of the services provided. Payments were also made to intermediaries, and alternative transport routes would have been used to avoid customs in Iraq.

At the time, some routes were said to have been controlled by terrorist organizations such as Islamic State (IS), Ericsson reported. So far, the researchers have not been able to find out who ultimately received the payments. Transactions and payments were also found with a possible money laundering risk.

Several employees were fired in the wake of the investigation, and disciplinary proceedings were initiated. In addition, business relationships with former partners have also been dissolved. However, there are no indications of direct financing of terrorist networks by Ericsson employees, it sounds.