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 21/06/2017, 22:44
more-disasters-but-less-moneyGENEVA: June 21, 2017. The United Nations says it needs US$23.5 billion in 2017 to provide humanitarian assistance to a record 141 million people in 37...
Written on 21/06/2017, 20:19
switzerland-remains-the-world-s-most-innovative-countryGENEVA: June 21, 2017 – Switzerland, Sweden, the Netherlands, U.S. and UK are the world's most- innovative countries according to a new report by produced...
Written on 21/06/2017, 16:53
fedex-and-ups-among-best-civic-minded-u-s-companiesSEATTLE: June 21, 2017. FedEx and UPS are among the 50 most community-minded companies in the United States according to the latest 'Civic 50' list from...
Written on 16/06/2017, 20:37
eu-commercial-drones-by-2019-says-commissionBRUSSELS: June 16, 2017. The European Commission says commercial drones flying in a 'U-Space' under 150 meters from the ground will be operate in the EU...
Written on 16/06/2017, 19:00
collaboration-and-compromise-key-to-uk-trade-futurePARIS: June 15, 2017. The OECD is forecasting a 1.7 percent rise in UK GDP this year and just 1.0 percent in 2018 as uncertainty rises of Britain not...
Written on 16/06/2017, 15:01
amazon-to-buy-bricks-and-mortar-grocer-for-us-13-7-billionSEATTLE: June 16, 2017. Amazon has agreed to buy Texas-based Whole Foods Market (WFM) for US$13.7 billion including debt. WFM reported Q2 2017 net sales...
Written on 15/06/2017, 20:35
amazon-to-sell-cars-in-britain-delivered-by-emirates-skycargoLONDON: June 14, 2017. Amazon is hiring automotive experts as a prelude to selling cars in the UK according to eCommerce delivery company Parcel...
Written on 12/06/2017, 16:13
qatar-airways-adds-dublin-as-profits-riseDOHA, Qatar: June 12, 2017. Despite continued uncertainty in Qatar following political and economic sanctions imposed by neighboring GCC countries, Qatar...
Written on 09/06/2017, 16:35
spanish-port-strike-continuesBARCELONA: June 09, 2017. Some 6,000 Spanish dockworkers are expected to continue their strike action until June 24 unless a meeting between their union...
Written on 07/06/2017, 01:08
we-are-still-in-say-u-s-states-and-businessesWASHINGTON, DC: June 05, 2017. Ignoring Donald Trump, 1,219 governors, mayors, businesses, investors, colleges and universities in the U.S. have declared...
Written on 06/06/2017, 19:35
iata-repeats-call-for-trade-freedomCANCUN, Mexico: June 06, 2017. IATA's 73rd annual general meeting has called on governments to implement the World Trade Organization's (WTO) Trade...
Written on 05/06/2017, 20:34
qatar-cargo-to-operate-perishables-airliftDOHA: June 05, 2017. The Qatar Cargo weekly A330 freighter service to London Heathrow that began on June 03 could be part of a food airlift if the Saudia...
Written on 01/06/2017, 20:52
u-s-not-so-competitiveLAUSANNE, Switzerland: May 31, 2017. The United States is no longer one of the top three competitive countries in the world according to a new 63-country...
Written on 01/06/2017, 18:57
rickmers-group-files-insolvency-following-bank-moveHAMBURG: June 01, 2017. The Rickmers Group has declared insolvency following the rejection by HSH Nordbank of a proposed financial restructuring. Last...
Written on 01/06/2017, 14:07
exxon-mobil-low-carbon-future-as-trump-pulls-climate-plugBOSTON, MA: June 01, 2017. As expected, Donald Trump has announced the United States is withdrawing from the Paris Agreement on climate change, despite...
Written on 26/05/2017, 16:16
powerful-future-ahead-for-madagascarPORT LOUIS, Mauritius. May 24, 2017. Volga-Dnepr Airlines has now completed a series of flights begun in March to deliver power generators from Mauritius...
Written on 25/05/2017, 20:07
rhinos-return-to-rwandaAKAGERA, Rwanda: May 25, 2017. Ten years after the Eastern black rhino disappeared from Rwanda following decades of poaching, 19 animals have now taken up...
Written on 25/05/2017, 18:33
port-everglades-gets-expansion-go-aheadPORT EVERGLADES, FL: May 24, 2017. Port Everglades is to invest US$437.5 million to add new berths for larger cargo vessels and install crane rail...
Written on 24/05/2017, 20:42
hapag-lloyd-takes-a-big-step-with-uascHAMBURG: May 24, 2017. Hapag-Lloyd and the United Arab Shipping Company (UASC) have completed their merger. Shareholders at the annual general meeting on...
Written on 23/05/2017, 21:03
dhl-adds-rail-link-between-shenzhen-and-belarusSHENZHEN: May 22, 2017. DHL Global Forwarding has launched the first regular LCL and FCL rail service that connects Shenzhen to Minsk in Belarus in less...

- powered by Quickchilli.com -