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The extent of Ericsson's bribery practices exposed a new report says

Thursday, 23 May 2013
Telecoms giant Ericsson gave a Swiss agent a heavy plastic bag, which was handed over in a park. This is just one of several points in which the U.S. authorities are taking to examine the telecom giant in relations to corruption and bribery allegations.

The report comes from the Swedish business daily, Dagens Industri, which says that the new information comes
from a secret arbitration where the Swiss agent ETUC (European Financial Services) requires Ericsson to compensate for non-payment.

Altogether Ericsson paid the Swiss agent SEK 27 million in connection with a 112 contract in Romania in 2004. Ericsson strangled subsequent payments on the grounds that the money was used for illegal and immoral purposes that conflicted with the contract.

In arbitration, come out, however, that the money was paid even after the arrangement has been formally cancelled. In a hearing EFS manager Urs Meister Hans said that that he in July 2005 received €236,000 in a plastic bag in a park.

Stories surrounding the Romanian 112 contract are many. In October 2001, the contract was awarded to a Canadian company Romanian Public Safety Inc. Barely two years later it was awarded to Ericsson same contract worth approximately 50 million euros, writes Dagens Indstri.

In 2004 Ericsson signs an agreement with EFS aimed at obtaining financial help to finance the Romanian 112 contract. As compensation, ETUC would have got 7.25 percent of the revenue from the deal. But EFS operations turned out to be something completely different than was expected.

"It is now undisputed that what EFS has really done is to divert a large portion of the payments made by Ericsson to a third party., this third party includes one of the parties mentioned as 'the Canadians' that is the Canadian company that Romanian Public Safety EFS Inc. has admitted that 95 per cent of the net profit from the commission was be passed through to 'the Canadians' "writes the arbitrators of the judgment, according to Swedish business daily, Dagens Industri.

The award came in October 2008. Ericsson was ordered to pay €526,401  to the ETUC on the grounds that "Ericsson had failed to show that EFS failed to perform tasks that fell under the Agreement.
by Scancomark.com Team

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