Ericsson (NASDAQ:ERIC) gives an update on the ongoing investigation in Greece relating to a defense agreement signed in 1999.
Greek authorities have been investigating numerous defense agreements for many years. One investigation involves an agreement from 1999 in which Ericsson Microwave Systems delivered an airborne radar system to Greece. Although Ericsson Microwave Systems was divested by the company in 2006, Ericsson has commented publicly on this case on several occasions.
In June 2016, Ericsson confirmed that a Greek prosecutor had served seven current and former employees with summons for preliminary investigation proceedings, involving allegations of possible corruption (read the press release from June 19, 2016 here).
Ericsson has not been contacted by any authority on this matter, but is aware that there is a recent decision to indict six of these seven individuals – two current and four former employees.
Although the company refrains from providing details of the ongoing legal proceeding, Ericsson takes all allegations of corruption in relation to our business seriously. Ericsson continuously updates and improves its anticorruption program, and has a strong Code of Business Ethics which is acknowledged by the employees at the time of employment and repeatedly throughout the term of employment.
Ericsson has zero tolerance for corruption and bribery – a commitment that starts at the Executive Team and that is enforced in all parts of the organization, in all parts of the world. Ericsson works actively to prevent any kind of corruption within the Group, for example through anticorruption training for both employees and suppliers. These efforts are reported transparently in the annual Sustainability and Corporate Responsibility Report.
NOTES TO EDITORS
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Ericsson is a world leader in communications technology and services with headquarters in Stockholm, Sweden. Touching the lives of millions of people throughout the globe, our organization consists of more than 111,000 experts who provide customers in 180 countries with innovative solutions and services. Together we are building a more connected future where anyone and any industry is empowered to reach their full potential. Net sales in 2016 were SEK 222.6 billion (USD 24.5 billion). The Ericsson stock is listed on Nasdaq Stockholm and on NASDAQ in New York. Read more on www.ericsson.com.