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Huawei Linked to Contract Scandal

7:30 AM Accusations of dodgy dealings in Austria

April 7, 2011

1 Min Read
Huawei Linked to Contract Scandal

7:30 AM -- Austria's Format magazine has published an article suggesting that Huawei landed network infrastructure deals at Telekom Austria AG (NYSE: TKA; Vienna: TKA) thanks to the corrupt influence of a political mover and shaker named Peter Hochegger.

The magazine alleges that Hochegger, a business agent, political lobbyist and marketing consultant, was paid 10 percent of the value of Huawei Technologies Co. Ltd. 's deals with the Austrian incumbent between 2007 and 2009.

The value of the deals, which saw incumbent providers Ericsson AB (Nasdaq: ERIC) and Nokia Networks edged out of deals because of the agent's influence, is reportedly €130 million (US$186 million), giving Hochegger an alleged €13 million ($18.6 million) payoff.

Telekom Austria has not commented or confirmed anything yet, but says it will issue a statement on the matter imminently, so watch this space.

— Ray Le Maistre, International Managing Editor, Light Reading

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