Ericsson has announced it is facing scrutiny from regulators in Greece and the US over corruption-related issues.
Greek authorities are investigating a contract secured by the former Ericsson Microwave Systems in 1999 to deliver an airborne radar system to the country, Ericsson said in a statement.
A Greek prosecutor has now summoned seven current and former employees to answer questions over allegations of possible corruption associated with the contract.
Ericsson noted that the company first commented on the case more than two years ago as part of its annual Sustainability and Corporate Responsibility disclosures. Because the investigation is ongoing, the company declined to comment further on the matter.
Ericsson sold its Ericsson Microwave Systems unit in 2006.
The disclosure came days after the company confirmedit is co-operating with US authorities over an enquiry over possible corruption.
US authorities first approached the company in 2013 to answer questions relating to its operations, Ericsson said.
The company declined to provide details of the request, except to note that it “relates to Ericsson's anti-corruption program and questions related to the Foreign Corrupt Practices Act.” Ericsson has not stated whether the two investigations are in any way related.
Reutersnotesthat media reports from the time indicate that the investigation may be related to Ericsson's business practices in Romania. The news agency said the probes will increase pressure on CEO Hans Vestberg following the company's recent underwhelming financial results.