Ericsson backs CEO and launches Iraq review

Ericsson backs CEO and launches Iraq review

Ericsson has announced a comprehensive review is being conducted by its new legal chief to get to the bottom of the company’s dealings in Iraq while backing chief executive Börje Ekholm to remain in charge despite the scandal.

In a statement, the Swedish vendor noted it reached a resolution with the US Department of Justice in 2019 and is currently operating under a monitorship and deferred prosecution agreement.

Ericsson chairman of the board Ronnie Leten said the vendor has taken “significant steps” to improve ethics and compliance throughout the company, including in relation to the current issues in Iraq, where it is accused of paying terrorists.

CEO Börje Ekholm has the “full confidence of the board” to drive the company’s performance, and also it's ethical and compliance transformation, said the vendor in a statement.

Chief legal officer Scott Dresser official joins the company today (March 21), will lead the review of Ericsson’s conduct in Iraq and how it was addressed.

“This process is ongoing and we will act promptly to address shortcomings or misconduct identified. The Company continues to coordinate with the DOJ and other relevant authorities”, said Leten.

Ericsson breached its deferred prosecution agreement previously for withholding key information on paying terrorist groups in Iraq to conduct its operations. 

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