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The
bribery took place over many years in countries including China,
Vietnam and Djibouti, the department said. The total charges
include a criminal penalty of more than $520 million, plus $540
million to be paid to the U.S. Securities and Exchange
Commission (SEC) in a related matter.
The company admitted it had conspired with others to violate the
Foreign Corrupt Practices Act (FCPA) from at least 2000 to 2016
by engaging in a scheme to pay bribes and to falsify books and
records and by failing to implement reasonable internal
accounting controls, the Justice Department said in a statement.
"Certain employees in some markets, some of whom were executives
in those markets, acted in bad faith and knowingly failed to
implement sufficient controls," Ericsson CEO Borje Ekholm said
in a conference call on Saturday.
"I view what has happened as a completely unacceptable and
hugely upsetting chapter of our history."
Ericsson used third parties to pay bribes to government
officials to secure and keep business, authorities said.
Consultants were retained to create slush funds and transfer
money to third parties, according to one of the complaints.
One of the company's subsidiaries, Ericsson Egypt Ltd, pleaded
guilty in the Southern District of New York to a charge of
conspiracy to violate the anti-bribery provisions of the FCPA.
Pleading guilty can bring additional severe sanctions, including
the revoking of licenses, but the company can negotiate waivers
to ensure they can continue to operate.
"Through slush funds, bribes, gifts, and graft, Ericsson
conducted telecom business with the guiding principle that
'money talks,'" U.S. Attorney Geoffrey Berman of the Southern
District of New York said in a statement.
Ericsson said it had reviewed its anti-corruption program and
taken measures to improve its ethics and compliance.
It has said previously it was cooperating with U.S. authorities
and that it would make a $1.2 billion provision in relation to
the probes.
Carl Mellander, chief financial officer, said the amount was
fully covered by a provision the company made in the third
quarter and added it would not impact any financial targets.
"While the amount for the settlement today is significant I can
confirm that we will be able to manage the associated cash
outflow with available funds," he told the conference call.
(Reporting by Chris Prentice in Washington; Additional reporting
by Sathvik N in Bengaluru and Johan Ahlander in Stockholm;
Editing by Bill Berkrot and Rosalba O'Brien)
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