Ericcson slumps on Iraq corruption probe

Shares of Ericsson fell 9% after the Swedish telecom gear maker disclosed results of an internal investigation that detailed suspect payments and misconduct in Iraq.

The investigation identified payments made to use alternate transport routes in connection with circumventing Iraqi Customs.

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.

The company revisited its stance after enquiries about the probe from media outlets, including from the International Consortium of Investigative Journalists (ICIJ).

The ICIJ said Ericsson did not address specific questions in relation to a wide range of corrupt behaviour in connection to its business in Iraq and elsewhere.


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