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Telekom Austria Probes Huawei Deals

Telekom Austria AG (NYSE: TKA; Vienna: TKA) says it has launched an internal investigation into allegations of corrupt business practices that resulted in the award of contracts to Huawei Technologies Co. Ltd.

The allegations first surfaced in Austrian magazine Format . (See Huawei Linked to Contract Scandal.)

The European operator says it "would like to distance itself fiercely from such alleged business practices, which fell under the responsibility of the former management," and says it has "launched internal investigations into these allegations in order to examine those and to get the facts out on the table."

It added: "In the event that these allegations prove to be true, the Telekom Austria Group will take appropriate action against the supplier Huawei and any further persons or companies involved."

Telekom Austria also says it will require all suppliers to sign a Code of Conduct "designed for the precise behavior regarding purchase processes. In case of misconduct by the supplier financial consequences will be implicated."

Huawei responded to the allegations with an emailed statement issued shortly after Telekom Austria announced its investigation. (See Huawei Responds to Austrian Allegations .)

Huawei has found it difficult to shake off repeated allegations of unethical business practices, though of course it is not alone in being implicated in dubious business dealings:



— Ray Le Maistre, International Managing Editor, Light Reading

digits 12/5/2012 | 5:08:20 PM
re: Telekom Austria Probes Huawei Deals

Huawei is desperately trying to build confidence and a reputation, especially in the U.S. This isn't going to help...

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