Ericsson Extends Monitoring Part of FCPA Deal for Another Year After Breach
Swedish telecommunications giant Ericsson will extend its compliance monitoring program, implemented as part of its deal to settle charges under the Foreign Corrupt Practices Act, for another year, the company announced. The agreement with DOJ and the Securities and Exchange Commission extends the term of the independent compliance monitor established in a deferred prosecution agreement until June 2024. Ericsson last year was accused of violating the DPA (see 2110220031).
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The DPA was reached in December 2019 after one of Ericsson's employees was charged with helping to bribe government officials in Djibouti to win a contract valued at around $24 million (see 2109090014). The employee, Afework Bereket, was indicted for his alleged role in this scheme, which also included leading an Ericsson subsidiary to enter into a fraudulent contract with a consulting company that then signed off on fake invoices to hide the bribe payments. As part of the DPA, Ericsson agreed to "engage an independent compliance monitor for a period of three years while the Company strengthened its culture and established a rigorous anti-corruption, compliance and controls program," the company said.
The Ericsson said the extension will allow it to further cooperate with DOJ over the breach notification and allow the firm to "further embed best in class governance, risk management and compliance frameworks across the organization."