In December 2019, Swedish telecom company Ericsson resolved a net $1.06 billion Foreign Corrupt Practices Act enforcement action. The enforcement action concerned conduct in Djibouti, China, Vietnam, Kuwait, Indonesia, and Saudi Arabia.
As to Djibouti, the DOJ alleged that various Ericsson employees “conspired and agreed with others to corruptly provide approximately $2,100,000 in bribe payments to, and for the benefit of, foreign officials in Djibouti, including Foreign Official 1 (described a high-ranking government official in the executive branch of the Djibouti government who had influence over decisions made by a state-owned telecommunications company), Foreign Official 2 (similarly described), and Foreign Official 3 (described as the CEO of the state-owned telecom company), in order to secure an improper advantage in order to obtain and retain business with Telecom Company and to win a contract valued at approximately €20,300,000 with Telecom Company (the “Telecom Company Contract”).”
Earlier this week, four former Ericsson executives were acquitted in Sweden concerning the same core conduct related to Djibouti. (See here and here for media coverage).
This is interesting.
Continue Reading
