Telecommunications Ericsson’s share price fell sharply after the company reported its abuses in Iraq

Network devices The stock of Ericsson, which manufactures Ericsson, fell more than 14 percent on the Stockholm Stock Exchange on Wednesday after the company reported its misconduct in Iraq on Tuesday night.

An internal audit completed in 2019 found serious violations of the company’s rules, evidence of corruption, and improper use of sales representatives and consultants.

The internal audit began when the company discovered unusual charges in Iraq in 2018. An audit completed the following year found evidence of Iraqi customs evasion charges to intermediaries and the use of alternative transport routes when the terrorist organization Isis and other armed groups controlled the transport routes.

Ericsson did not release the results of the internal audit until Tuesday, as several media outlets had asked about it. The company has no conclusive evidence that payments were made to a terrorist organization or any other armed group.

“Two years ago, after the study was completed, we estimated that the findings were not material enough to have been communicated,” said Ericsson’s CEO. Börje Ekholm news agency Reuters.

According to Ericsson, several employees have since left the company and agreements with “third parties” have been terminated.

Two years ago Ericsson pleaded guilty corruption in China, Indonesia, Vietnam, Kuwait and Djibouti. The company settled the matter by paying more than a billion euros to the U.S. Department of Justice.

U.S. authorities are investigating Ericsson’s actions as the company is listed on the U.S. Nasdaq stock exchange.

Last year, four former Ericsson employees were sued in Sweden in the same case allegations of gross bribery.

In May 2021, Ericsson also reported to pay its rival Nokia EUR 80 million in damages for corruption in which the company had won tenders. The compensation concerned Ericsson’s illegal activities in six states, one of which is Djibouti.