Ericsson may have paid ISIS, admits CEO; stock tumbles over 12%

Shares of Ericsson fell more than 12 per cent on Wednesday after the Swedish telecom gear maker disclosed results of an internal investigation that detailed suspect payments and misconduct in Iraq by its employees.

The company’s investigation had identified payments made to use alternate transport routes in connection with circumventing Iraqi Customs, at a time when militant organisations, including Islamic State, also known as ISIS, controlled some routes.

While Ericsson said it could not determine if any employee was directly involved in financing such organisations, it noted that as a result of the investigation several employees had left the firm.

Ericsson CEO Börje