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Huawei, ZTE Execs Found Guilty of Corruption

Ray Le Maistre
6/8/2012
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Huawei Technologies Co. Ltd. and ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763) have been excluded from public contracts in Algeria for two years and fined 3 million Algerian dinars (US$39,000) each after their staff were among a group of telecom executives found guilty of corruption by a court in Algiers.

According to local reports in Algeria -- see this Presse-dz article, published in French, for example -- the case relates to money laundering and bribery in the period 2003-2006.

Mohamed Boukhari, a former senior executive at Algérie Télécom , and businessman Chami Madjdoub were found guilty of money laundering and receiving illegal payments, having set up consulting firms to receive unauthorized commissions, believed to have totaled about $10 million, "to the detriment of Algeria Telecom." They were fined 5 million dinars ($65,000) and sentenced to 18 years in jail.

Two ZTE executives, Dong Tao and Chen Zhibo, and Huawei executive Xiao Chuhfa were, in their absence, sentenced to 10 years in jail each for their involvement. International arrest warrants have been issued against the trio.

Huawei tells Light Reading that it takes this matter "very seriously," adding that it is "currently reviewing the court's decision." ZTE had not responded to a request for comment as this article was published.

The timing of the court's decision comes as both Huawei and ZTE face political pressure in Europe regarding various business practices. (See Euronews: EC Sharpens Knives Over Huawei, ZTE and Euronews: China Warns EU Over Protectionism.)

— Ray Le Maistre, International Managing Editor, Light Reading

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Anne Morris
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Anne Morris,
User Rank: Light Beer
12/5/2012 | 5:30:45 PM
re: Huawei, ZTE Execs Found Guilty of Corruption


Wonder how they all feel about this in Switzerland...

Rush21120
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Rush21120,
User Rank: Light Sabre
12/5/2012 | 5:30:44 PM
re: Huawei, ZTE Execs Found Guilty of Corruption


Why wouldn't the court ask for full restitution or did I miss that?  Jail time seems reasonable, but they better build bigger jails if their serious in housing all the crooks.

joebraue
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joebraue,
User Rank: Light Beer
12/5/2012 | 5:30:43 PM
re: Huawei, ZTE Execs Found Guilty of Corruption


Interesting that Huawei and ZTE are known as tough head-to-head competitors, but in this case, the Algerian official said that officials from both companies approached him at a party and together offered to do some research studies and pay him the money.

acohn
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acohn,
User Rank: Light Sabre
12/5/2012 | 5:30:43 PM
re: Huawei, ZTE Execs Found Guilty of Corruption


Just have each Chinese Vendor play off on each other.  Have ZTE walking out of your offices as the Huawei team are waiting outside. Loads of fun.

jayja
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jayja,
User Rank: Light Sabre
12/5/2012 | 5:30:42 PM
re: Huawei, ZTE Execs Found Guilty of Corruption


"Shocked and stunned". 

Soupafly
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Soupafly,
User Rank: Light Sabre
12/5/2012 | 5:30:42 PM
re: Huawei, ZTE Execs Found Guilty of Corruption


<dripping sarcasm mixed with an ironic twist>


+1 to jayja!


I can scarcely believe such a thing could happen....


I am sure that all parties concerned will immediately hand themselves into the authorities for further "discussion".  


</dripping sarcasm mixed with an ironic twist>

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