Ericsson Ericsson AB Refusal to pay invoices without reasonable explanation Stockholm

Our company signed a contract with Ericsson AB in March 2019 for the installation of telecommunications equipment. Our company fully completed our contractual scope, including submission of reports which were accepted and approved by Ericsson. Unfortunately, they refuse to pay our invoices.

In August 2019, we received an email from Ericsson’s Strategic Sourcing Manager directing us to settle a matter with another that was doing work for our company; otherwise the relationship between our company and Ericsson will be affected. We found out later, that the contractor has friends and family in Colombia and Panama offices of Ericsson.

Since the threat from the Sourcing Manager on behalf of the contractor, all invoices submitted by my company has been unpaid – some more than 90 days. The explanation received from Ericsson for the failure to pay our company is that the company did not complete the work for which invoices were submitted. Ericsson maintains this claim even after our company provided evidence that reports proving the work was completed were already accepted and approved by Ericsson. So Ericsson accepted and approved the work completed, but refuses to pay because we didn’t complete the same work.

It is clear to us that the explanation from Ericsson is baseless since they have all the means to veriy our work; our payments are obviously being held because of the threat from Sourcing Division. My company is proceeding with the legal dispute procedure; however, this behavior from Ericsson’s representatives is at best unethical and corrupt at worse.