One of the world’s leading telecommunications equipment companies could be in even more hot water after revelations that it may have funded terrorism.
The CEO of Ericsson told a Swedish publication that the company identified “unusual expenses” with ties to accessing transportation routes in Iraq.
Although the company hasn’t determined a final recipient, Borje Ekholm acknowledged those areas were controlled by terrorist organizations, “including ISIS.”
The report sent the company’s stock price plummeting, but things could get much worse.
The incident is likely connected to a long-running corruption probe involving Ericsson operations in Asia and the Middle East.
U.S. officials last year accused the company of violating the terms of a $1 billion settlement of that probe.
Additional issues in Iraq — and the possibility that Ericsson kept them under wraps — could further irritate the Justice Department.
The Swedish company is one of just two Western makers of 5G telecom equipment — and a vital cog in U.S. efforts to push back against China’s Huawei.