Shares of Ericsson down 9% due to Iraq corruption probe
Ericsson’s shares, on Wednesday, dropped down to 9% after the Swedish telecom gear maker disclosed results of an internal investigation that detailed suspect payments and misconduct in Iraq.
The company’s investigation had identified payments made to use alternate transport routes in connection with circumventing Iraqi Customs, at a time when militant organisations, including Islamic State, controlled some transport routes.
While Ericsson said it could not determine if any employee was directly involved in financing such organisations, it noted that as a result of the investigation several employees had left the company.
“At any point in time, there are multiple investigations taking place,” Ekholm said. “There are some who want to take advantage of the system. So the key is to have in place a compliance system that uncovers them very quickly, and that we can take swift remediation actions on those.”
“We believe the key is what may come out of the investigation and if there is any reason for authorities to have a closer look,” he said. Zawya
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