Ericsson confirms Greek investigation into contract from 1999

Ericsson in Sweden
Telecom network maker Ericsson on Sunday confirmed about an investigation in Greece relating to a defense agreement signed in 1999.

The Swedish company on Friday announced ongoing investigation by US authorities on corruption charges. The US investigations related to bribery charges can result into huge penalty.

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Ericsson said Greek authorities have, for a period of time, conducted investigations into arms deals in the Greek defense sector.

One investigation involves an agreement — signed in 1999 — in which Ericsson Microwave Systems delivered an airborne radar system to Greece. The company reports incidents of corruption annually as part of its Sustainability and Corporate Responsibility disclosures. Ericsson commented publicly on this case more than two years ago, including in conjunction with its Annual General Meeting.

Ericsson Microwave Systems was sold by Ericsson in 2006. Company records, agreements and documentations were handed over as part of the sale.

Recently, as part of the ongoing investigation, seven current and former Ericsson employees have been served with summons in preliminary investigation proceedings by a Greek prosecutor involving allegations of possible corruption.

“Ericsson has not been contacted by any authority in this matter. The current and former Ericsson employees have not yet been provided with the full relevant documentation from the investigation, and have not yet been questioned by the Greek prosecutor,” said Ericsson in a statement issued on Sunday.

Ericsson does not want to comment further on this matter because an investigation is on-going, where present and former employees have been served.