The US Securities and Exchange Commission (SEC) opened an investigation into Ericsson related to its Iraq corruption report, as the fallout from the vendor’s revelations of serious breaches of business ethics continued.

In a short statement the vendor announced it had been informed of the move, noting the investigation was “concerning the matters described in the company’s 2019 Iraq investigation report”.

Ericsson added it was fully cooperating, though it was “too early to determine or predict the outcome of the investigation”.

In February the vendor disclosed the results of an internal investigation undertaken in 2019 into its activities in Iraq.

Alongside uncovering several serious breaches of the company’s business ethics policies, at the time Ericsson raised the possibility payments may have been made to terrorist organisations.

Among the findings, Ericsson found evidence of: making a monetary donation without a clear beneficiary; paying a supplier for work without a defined scope and documentation; using suppliers to make cash payments; funding inappropriate travel and expenses; and improper use of consultants and sales agents.

Misconduct uncovered dates back to between 2011 and 2019.

The findings and handling of the results of its internal investigation have also drawn the ire of the US Department of Justice (DoJ), in addition to shareholders.

In March 2022, the DoJ informed Ericsson disclosures made about the Iraq investigation prior to entering into a Deferred Prosecution Agreement in late 2019 were insufficient. It also claimed the agreement had been breached by failing to make subsequent disclosures on its investigation.