Ericsson workers kidnapped after being sent to negotiate with IS

Image source, Reuters

According to a leaked report, the telecoms company put contractors lives at risk by telling them to continue working in territory controlled by the IS group. The report finds that they were kidnapped by IS.

One of the world's biggest telecoms companies and a key player in the roll out of 5G networks in the UK, has replaced Chinese telecoms firmHuawei after security concerns.

Last week, Ercisson Chief executive Borje Ekholm admitted that money had been paid by the company to access quicker transport routes in Iraq at the time, and that IS may have been the recipients. The market value of the company was wiped out.

The document was obtained by the International Consortium of International Journalists and is from an investigation into corrupt activities in 10 countries. Its operations in Iraq were the most serious findings.

The report found that senior managers ignored the advice of a senior lawyer who recommended shutting down the company's operations in Iraq when IS seized the second-city of the country. The document says that they felt such an action was premature and would destroy their business in the country.

The report found that the company's insistence that its contractors continued to work in IS-held territory put lives at risk because the militant group took a number of contractors hostage.

At the time IS took over the city, a group of engineers were doing fieldwork for Ericsson. He was sent a letter from the company requesting permission from the terror group to continue working there.

He told NDR that they were met by a pick-up truck full of people who had seized him.

He says that an IS fighter used his phone to call the managers of the company and demand a million dollars to work in the area.

The IS member told Ericsson that if he didn't pay, he would bring everyone who worked for him here. One by one.

The manager of the company stopped answering his calls after he was placed under house arrest.

The managers of the company who received the call from IS refused to speak to the media.

The person named in the report was released after a month. According to the report, one of the company's partners made arrangements with the IS to secure his release and allow the company to continue their work. The report does not identify what those arrangements were.

This was not the only possible interaction with IS. The report found that the company's transport contractor used a fast route through the country called the "Speedway" which avoided government checkpoint but passed through IS territory. Evidence of bribe payments was found by investigators.

One senior government telecoms official in Iraq who doesn't want to be named for fear of losing his job told another of ICIJ's media partners that Ericsson knew what was going on. There is no sane person who would deal with IS directly. The militant group would take a percentage from every cent paid in the city. This is how they amassed millions.

The internal document shows a culture of corrupt activities and paying bribes in 10 different countries. Over the course of a number of years, the corruption extended to a slush fund for officials in Lebanon, with gifts such as a $50,000 luxury trip to Sweden for the former Minister of Telecoms, Boutros Harb.

Mr Harb said he went on a business trip to Sweden for free. He has not received any gifts or benefits. He was unaware of any internal investigation by the company.

The charity that received the $50,000 payment was connected to the Barzani family, who own the mobile phone network Korek. The report could not say where the money went. A spokesman for the Sirwan Barzani didn't reply to our specific questions, but he did say that he and his fellow Peshmerga can spend more time with their families.

A $1 billion settlement was reached with the US authorities after allegations of widespread corruption in five countries. The US Department of Justice was not made aware of the new revelations at the time of the settlement.

The Department of Justice did not comment on the case. The company did not respond to the specific questions, but said that it is working with external counsel to review the findings from the investigation to identify any additional measures that the company should take.