Ericsson Accused of Multimillion-Dollar Bribery Scheme in Iraq
A leaked internal report from Swedish telecommunications giant Ericsson has revealed a widespread bribery scheme in Iraq, with millions of dollars in suspicious transactions and payments to government officials, contractors, and suppliers.
Questionable Payments Revealed
The report, which covers the period from 2011 to 2019, details tens of millions of dollars in questionable payments, including:
- Bribes: $40,000 to $50,000 for an all-expense-paid trip to Sweden for Lebanon’s telecommunications minister and his wife in 2015
- Payoffs to customers: A $10.5 million payment to Alawsatiya, a sister company to Al-Awsat, which was approved by Ericsson despite allegations of corruption
- Gifts to government officials: A $97,800 payment for customer gifts and entertainment for government officials in Iraq
Inconsistencies and Contradictions
The report also details inconsistencies in dates, people, and companies involved, as well as contradictions between interviews with current and former Ericsson employees. Some payments were made by contractors and suppliers, and it is unclear whether Ericsson takes responsibility for those transactions.
Investigation Conducted by ICIJ and Partners
The investigation was conducted by the International Consortium of Investigative Journalists (ICIJ) and its partners, who verified the records’ authenticity and spent months examining other documents and interviewing ex-employees, government officials, contractors, and industry insiders in Iraq, London, Washington, Jordan, Lebanon, and elsewhere.
Ericsson’s Response
Despite repeated requests from journalists and researchers, Ericsson has declined to comment on the allegations. The company’s internal report was prepared with the assistance of a U.S. law firm and captures 28 witness accounts, 22.5 million emails, and 4 terabytes of documents.
Concerns Raised
The findings raise serious concerns about Ericsson’s business practices in Iraq and the company’s willingness to engage in corrupt activities. The investigation is ongoing, and further details may emerge as the story unfolds.
Conclusion
The allegations of bribery and corruption at Ericsson highlight the need for greater transparency and accountability in international business dealings. As the investigation continues, it remains to be seen what other secrets will be revealed about Ericsson’s activities in Iraq.