Sponsored By

Huawei, ZTE Execs Found Guilty of Corruption

Chinese vendors barred for two years from public contracts in Algeria after staff members were convicted in a telecom corruption case

June 8, 2012

1 Min Read
Huawei, ZTE Execs Found Guilty of Corruption

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

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like