Swedish telecommunications and networking equipment maker Ericsson has agreed with the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) to extend for one year, until June 2024, the independent compliance oversight agreed in 2019 with U.S. authorities to settle Foreign Corrupt Practices Act (FCPA) violations.
In 2019, Ericsson entered into an agreement with the DOJ and SEC to settle the case for FCPA violations related to the Scandinavian company’s actions in Iraq, where the multinational acknowledged making payments to intermediaries and using alternative transportation routes at a time when terrorist organizations, including ISIS, controlled some transportation routes in the country.
As part of that resolution, Ericsson agreed to hire an independent compliance monitor for a three-year period while the company strengthened its culture and established a rigorous anti-corruption, compliance and control program.
In this regard, the company has indicated that this extension will allow it to further integrate the best governance, risk management and compliance frameworks throughout the organization.
«This extension is consistent with our commitment to the continuous improvement of Ericsson’s Ethics and Compliance program,» said Börje Ekholm, president and CEO of the multinational company.
«We have made significant progress in changing our culture and implementing an enhanced compliance framework and system of internal controls, and we will use this additional time to ensure that these improvements are ingrained in our organization, our daily interactions and the way we do business,» he added.
