Sweden’s Ericsson is to pay a US$206 million fine and plead guilty after violating a 2019 deal with US prosecutors that required the telecoms firm to properly disclose information on its activities in Iraq, China and Djibouti.
The plea agreement with the US Department of Justice (DOJ) follows a scandal over possible payments made to the Islamic State militant group through its activities in Iraq.
The department said in a statement that the firm fell short in disclosing activities after entering a deferred prosecution agreement (DPA) in 2019 to resolve a probe into years of alleged corruption in China, Vietnam and Djibouti.
Photo: AFP
Under the DPA, the department had agreed to hold off prosecuting Ericsson for three years if it paid a steep penalty, implemented “rigorous internal controls,” complied with US laws and cooperated fully on any ongoing investigations.
“Ericsson breached the DPA by violating the agreement’s cooperation and disclosure provisions,” the department said in a statement.
Although such agreement breaches have been historically rare, the department has warned a number of companies in since US President Joe Biden took office as it cracks down on corporate misconduct and repeat offenders.
Ericsson would be required to serve a probation term through June next year and agreed to a one-year extension of an independent compliance monitor, the department said.
Ericsson previously paid a total criminal penalty of more than US$520 million and agreed to the imposition of an independent compliance monitor for three years, the department said on Thursday, referring to the 2019 settlement.
“This resolution is a stark reminder of the historical misconduct that led to the DPA,” Ericsson chief executive officer Borje Ekholm said in a statement. “We have learned from that and we are on an important journey to transform our culture.”
Ericsson last year disclosed that a 2019 internal probe had identified payments designed to circumvent Iraqi customs at a time when militant organizations, including the Islamic State, controlled some routes.
The internal probe did not conclude that the firm made or was responsible for any payments to any terrorist organization, and the firm continues to probe the matter “in full cooperation with the DOJ and the US Securities and Exchange Commission,” Ericsson said.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to