SEC Launches Probe on Ericsson's Iraq Scandal

The US Securities and Exchange Commission opened an investigation on Ericsson's Iraq corruption report. The Swedish-based company announced in a short statement that it was informed of the investigation, noting it was concerning the matters described in the company’s 2019 Iraq investigation report.

Ericsson added it was fully cooperating, though it was too early to determine or predict the outcome of the investigation. In February the vendor disclosed the results of an internal investigation undertaken in 2019 into its activities in Iraq. Alongside uncovering several serious breaches of the company’s business ethics policies, at the time Ericsson raised the possibility payments may have been made to terrorist organizations.

Among the findings, Ericsson found evidence of making a monetary donation without a clear beneficiary, paying a supplier for work without a defined scope and documentation, using suppliers to make cash payments, funding inappropriate travel and expenses, and improper use of consultants and sales agents. Misconduct uncovered dates back to between 2011 and 2019.