Ericsson has confirmed a report by Swedish daily broadsheet newspaper Svenska Dagbladet (SvD) that the company is the subject of a US Securities & Exchange Commission (SEC) investigation into alleged corruption. SvD had cited sources as saying Ericsson was being probed both by the SEC and the US Department of Justice, amongst other things into its dealings in China. The company says it is cooperating with the US authorities in a probe under the Foreign Corruption Practices Act, which began in March 2013.
SvD reported that Ericsson said very briefly that it always aims to run its business in accordance with the relevant laws but, because it operates globally, questions do sometimes arise. Ericsson said it was not releasing any further details on the matter.
SvD said that Ericsson had fired its Asia-Pacific head Mats H Olsson, following allegations of inappropriate behaviour and of suspected corruption while he held various roles in Asia, but added that it is not clear whether he is part of the SEC probe. Ericsson announced in April that Olsson would be leaving the company in July 2016.
The newspaper said that in 2006, Olsson had been reported to then-CEO Carl-Henric Svanberg for having an interest in an Ericsson sub-contractor, in breach of company rules. The newspaper claimed that Olsson terminated the contract of the whistleblower at the end of 2005. SvD said it has also received information that the SEC had taken an interest in the dealings of defence company Ericsson Microwave System, which it sold in 2006.
