English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

ZTE fined over a US$1 billion

DALLAS/ SHENZHEN: March 07, 2017. ZTE, a provider of telecommunications systems, mobile devices and enterprise technology solutions, has been fined US$892.36 million with a further $300 million suspended for seven years, for the illegal shipment of telecomm equipment to Iran and North Korea between 2010 and 2016.

According to the U.S. Department of Commerce (DoC), it is the largest criminal and civil penalty ever levied by its Bureau of Industry Security (BIS) following a five-year investigation by the BIS and the U.S. Attorney's office in North Texas, the Department of Justice, the FBI and the Department of Homeland Security.

Despite long-standing embargoes against Iran and North Korea, ZTE and its Texas-based subsidiary conspired to supply, build, operate, and service large-scale telecom networks for companies associated with the Iranian government, according to the DoC statement.

ZTE USAThe DoC said ZTE obtained contracts worth "hundreds of millions of dollars" to export U.S.-manufactured routers, microprocessors and servers to Iran, and then re-export 283 shipments from Iran to North Korea.

Despite saying it had stopped shipping to Iran in March 2012, ZTE allegedly continued to do so by using a number of shell companies while setting up a scheme to hide the information from an independent counsel and forensic accounting firm investigating its corporate governance.

ZTE also formed a 13-member 'Contract Data Induction Team' to destroy, remove or sanitize all documents relating to the company's Iran business that post-dated March 2012. The team members were forced to sign a non-disclosure agreement about what they were doing and faced a US$150,000 penalty if ZTE determined they had disclosed anything.

Commenting on the fines, ZTE chairman and CEO Zhao Xianming said he "acknowledges the mistakes [the company] made, takes responsibility for them, and remains committed to positive change". Zhao replaced his predecessor in April 2016.

In anticipation of the DoC sanctions, last November ZTE appointed its ZTE USA legal counsel Matt Bell to head its export compliance department. Bell is a former compliance officer for Kellogg Brown & Root and consultant with Ernst & Young and KPMG. "We are creating a global team of experienced compliance professionals, and our compliance trainings have been strengthened and reinforced at every level of the company," Bell declared.

At the end of a statement acknowledging its criminal behavior the company added: "ZTE is committed to corporate social responsibility and is a member of the UN Global Compact." For the six months ending June 2016, the company reported a turnover of RMB 47.7 billion and a net profit of RMB1.76 billion.

News

Written on 16/09/2017, 03:38
panam-provides-canada-rail-link-to-bostonPORT ST JOHN, Canada: September 13, 2017. Port operator DP World and PanAm Railways are launching an intermodal rail service between the New Brunswick...
Written on 13/09/2017, 21:01
cma-cgm-to-deliver-irma-humanitarian-aidMARSEILLE, September 13, 2017. The French government has asked CMA CGM to ship 46 modular living containers, food and vehicles from Marsellie on September...
Written on 10/09/2017, 21:27
u-s-department-of-defence-responds-to-irmaMARCO ISLAND, Florida: September 10, 2017. Hurricane Irma has become the second Category 4 hurricane to make landfall on the continental U.S. in less than...
Written on 08/09/2017, 19:53
iata-warns-of-airfreight-peakGENEVA: September 06, 2017. IATA reports an 11.4 percent increase in freight tonne kilometers (FTKs), in July over the same period a year ago. The...
Written on 08/09/2017, 19:21
alibaba-signs-third-government-mou-in-latin-americaHANGZHOU, China: September 06, 2017. The Alibaba Group has signed an MoU with Mexico to provide the country's SMEs with global e-commerce, digital...
Written on 06/09/2017, 21:07
mars-to-invest-nearly-us-1-billion-on-sustainabilityMCLEAN, VA.: September 06, 2017. Family-owned candy and pet-food manufacturer Mars is to spend nearly US$1billion on a sustainability plan to tackle...
Written on 06/09/2017, 18:43
europe-s-intermodal-rail-network-loses-billionsBRUSSELS: September 05, 2017. Over 20 European rail and logistics organizations are warning Europe's intermodal network is "about to collapse" following...
Written on 05/09/2017, 17:39
new-joint-venture-for-us-mexico-rail-ferryDARIEN, CT/FORT LAUDERDALE, FL: September 05, 2017. Railroad operator Genesee & Wyoming (G&W) is investing in a four-day rail ferry service...
Written on 03/09/2017, 22:17
audi-opts-for-green-rail-logisticsINGOLSTADT, Germany: September 01, 2017. Audi says it is the first company in Germany to be CO2-neutral using DB Cargo's 'DBeco plus' rail service. The...
Written on 30/08/2017, 23:14
public-private-partnerships-respond-to-harveyHOUSTON/BATON ROUGE: August 30, 2017. As UPS and FedEx join other US$1 million-donors in responding to what is described as the worst flooding disaster...
Written on 28/08/2017, 16:42
new-uk-garbage-transport-planLONDON: August 28, 2017. The British government is offering £22 million to develop low carbon waste-based fuels to power commercial aircraft and...
Written on 25/08/2017, 15:37
qantas-plans-profitable-nonstop-to-new-yorkSYDNEY: August 25, 2017. Qantas chairman Alan Joyce has challenged Boeing and Airbus to build an aircraft that can fly non-stop with a full payload...
Written on 24/08/2017, 22:04
walmart-launches-a-googlemart-to-compete-with-amazonBENTONVILLE, AK: August 23, 2017. Walmart is partnering with Google to launch voice shopping for its U.S. customers via Google Assistant starting in late...
Written on 24/08/2017, 19:33
nepal-forwarders-recognize-qatarKATMANDU: August 23, 2017. The Nepal Freight Forwarders Association has given Qatar Airways Cargo an award for carrying the most export tonnage out of...
Written on 23/08/2017, 17:30
panama-handles-largest-box-carrierPANAMA CANAL: August 22, 2017. The CMA CGM Theodore Roosevelt, with a capacity for 14,855 TEU, has become the largest box ship to traverse the expanded...
Written on 22/08/2017, 16:07
hawaii-shippers-to-have-third-liner-serviceHONOLULU, HI: August 21, 2017. Tote Maritime, part of the Alaska-based Saltchuck logistics group, is to launch a new ocean service to Hawaii from the U.S....
Written on 18/08/2017, 21:43
mexico-boosts-miami-air-cargo-volumeMIAMI: August 17, 2017. Miami International Airport has reported a 4.8 percent growth in cargo traffic for the first half of 2017 with domestic traffic...
Written on 17/08/2017, 18:44
turkish-cargo-helps-save-livesMOGADISHU: August 15, 2017. In March this year actor Ben Stiller and other celebrities launched a viral crowdfunding appeal on behalf of the famine in...
Written on 17/08/2017, 18:01
first-flight-out-for-hungarian-horsesBUDAPEST: August 15, 2017. Cargolux and Hellmann Worldwide Logistics have flown 14 Hungarian-bred racehorses from Budapest via Luxembourg and Beijing to...
Written on 11/08/2017, 15:35
european-commission-supports-hna-purchase-of-frankfurt-hahn-airportFRANKFURT HAHN: August 10, 2017. The HNA Group has completed its acquisition of Frankfurt-Hahn airport from the German state of Rhineland-Palatinate. The...

- powered by Quickchilli.com -