Telecom giant Ericsson paid millions in bribes to ISIS fighters in Iraq: Report

ByNews Desk- The Cradle 

According to the report the company continued to conduct business in ISIS-occupied territory despite the kidnapping of its own employees

According to a leaked internal report from telecommunications company Ericsson obtained by the International Consortium of International Journalists (ICIJ), the firm spent millions of dollars funneling equipment into ISIS controlled territory in Iraq.

The leaked document dates back to a 2019 investigation into the firm’s activities in 10 different countries, including suspicious activity in Iraq from 2011 to 2019.

The report details “a range of misconduct perpetrated by Ericsson employees and third parties” in Iraq spanning over nearly ten years, involving “bribes and kickbacks… fraud and embezzlement,” and the use of illegal routes to evade official Iraqi customs checkpoints.

Emails obtained by the ICIJ suggested “illegal bypassing of customs and passing through ISIS-controlled areas in connection to transportation in Iraq.”

“There were numerous interviews stating it was more important to do business and deliver to customers, than ensuring the transportations were conducted according to laws and regulations,” the investigators said.

According to the report, Ericsson issued bribes to ISIS in order to continue providing its services in Iraq after the militant group seized around 40 percent of the country’s territory, putting its own employees at risk.

“This persistence resulted in the kidnapping of [contractors] while doing fieldwork for Ericsson,” the report mentioned, adding that despite the kidnappings, the company continued conducting business in volatile areas within Iraq.

The report contained information regarding the use of 30 trucks, which paid $3,000 to $4,000 per load in order to carry Ericsson products into ISIS-controlled territory in Iraq.

The ICIJ said that the firm also used unvetted subcontractors, running its business in Iraq through fake accounts, invoices with exaggerated amounts, and fabricated financial statements made to so-called “contractors” with vague job descriptions.

Investigators were not able to “determine the ultimate recipients of these payments,” the report mentioned.

The internal report also claims that at least 10 Ericsson employees violated company regulations and were involved in fraud, bribery, money laundering, and obstructing the investigation, adding that although some of those employees were dismissed, others were promoted.

The company has so far failed to comment on its alleged wrongdoing in the countries mentioned in the report, including Iraq, despite having lost 14.5 percent in shares since the information surfaced.