Huawei CFO Posts Bail in Canada
Huawei's Meng Wanzhou is out of jail.
In a court hearing yesterday, a Vancouver judge granted bail to the CFO, who has been in a Canadian jail since Dec. 1, for about $7.5 million.
"The courtroom erupted in applause when the decision was announced," according to a Reuters report in The New York Times. "Meng cried and hugged her lawyers."
Meng is required to wear an ankle monitor and stay home from 11:00 p.m. until 6:00 a.m. each day, per the conditions of her bail, Reuters reported.
According to John Gibb-Carsley, an attorney with Canada's Justice Department, Huawei, with Meng's involvement, used an "unofficial subsidiary" in Hong Kong called Skycom Tech to conduct transactions in Iran and do business with telecom vendors there, in violation of US sanctions against Iran, between 2009 and 2014.
As previously reported here and in The Times, Gibb-Carsley claimed that Skycom employees used Huawei email addresses and possessed badges and used letterhead with the Huawei logo. Those two companies are believed to be one and the same, Gibb-Carsley claimed.
Though Gibb-Carsley has characterized Meng as a flight risk, the judge in the case, Justice William Ehrcke, apparently disagreed.
Complicating matters as only he can, President Donald Trump said in an interview with Reuters on Tuesday he would intervene with the U.S. Department of Justice in the case against Meng if it meant that he could secure a trade deal with China. The President has been consistent in his tendency to dismiss the rule of law in the face of making arrangements for personal gain. Trump weighed in -- via Tweet -- on a ban selling US components to ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763), allowing the company to re-open, with conditions, in May. (See Trump Tweets on ZTE… & Gives the Chinese Vendor a Lifeline! and Trump Says ZTE Can Re-Open... With Conditions.)
Huawei hasn't budged on its characterization of Meng's arrest; the Chinese telecom equipment vendor denies knowledge of any wrongdoing by Meng. (See Canada Arrests Huawei CFO – Report and China Slams Huawei CFO's Arrest, Huawei 'Not Aware of Any Wrongdoing'.)
In this week's Light Reading podcast, Editor-in-Chief Ray Le Maistre comments that Huawei's troubles with governments outside of China, and top global service providers, could set back several carriers in the race to build 5G networks. (See Podcast: The Heat Is on Huawei.)
— Phil Harvey, US News Editor, Light Reading