Huawei Technology Co Ltd (SHE:002502) is again involved in a controversy for attempting to sell goods embargoed by the United States government to Iran.
According to a report from Reuters the Chinese telecommunication giant was connected to an attempted sale of embargoed computer equipment from Hewlett-Packard Company (NYSE:HPQ) to the largest mobile phone operator in Iran.
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The report cited that the person behind the attempted sale of products from Hewlett-Packard Company (NYSE:HPQ) was Cathy Meng, the chief financial officer of Huawei Technology Co Ltd (SHE:002502). She is also the daughter of Huawei founder & CEO, Ren Zhengfei.
According to Reuters, from February 2008 until February 2009, Meng served as a member of the board of directors of Skycom Tech Co Ltd., a company based in Hong Kong that offered to sell €1.3 billion worth of equipment manufactured by Hewlett & Packard Company (NYSE:HPQ) to Iran’s Mobile Telecommunications Co.
Reuters cited that the proposal of Skycom Tech to Mobile Telecommunications was marked “Huawei confidential.”
Hewlett-Packard Company (NYSE:HPQ) prohibits the sale of its products in Iran. According to Huawei Technology Co Ltd (SHE:002502) Skycom is one of its “major local partners” and neither of the two companies sold the HP products to the Iranian telecommunications company.
“The relationship between Huawei and Skycom is a normal partnership. Huawei has established a trade compliance system, which is in line with industry best practices and our business in Iran is in full compliance with all applicable laws and regulations including those of the UN. We also require our partners, such as Skycom, to make the same commitments, ” explained Huawe in an e-mailed statement.
“The relationship between Huawei and Skycom is a normal partnership. Huawei has established a trade compliance system which is in line with industry best practices and our business in Iran is in full compliance with all applicable laws and regulations including those of the UN. We also require our partners, such as Skycom, to make the same commitments,” Huawei added in the statement.
On the other hand, during the presentation of Huawei’s financial results in Beijing, last week, Meng told reporters that the company will honor its commitment to transparency and openness.
The United Stated House Intelligence Committee previously criticized the company for its failure to provide proofs that it is in full compliance with the international sanctions or U.S. export laws against Iran. The sanctions were implemented to prevent Iran from developing nuclear weapons.
Huawei was previously accused of trying to sell American antennas to MTN Irancell through its business partner, Soda Gostar Persian Vista. The Iranian mobile phone operator cancelled its order for 36 cellular tower antennas after learning that the products were under United States government sanctions.