Dodgy Bank Deals & Secret Company Hear Of US Claim Against Huawei Boss
Huawei’s Chief Financial Officer Meng Wanzhou was charged on Friday with conspiracy to defraud banks using a Company called Skycom which is a little known Hong Kong equiptment Company that is alleged to have sold communication gear to Iranian Telecommunication companies breaching U.S and European sanctions against the Middle Eastern country.
Earlier today (Sunday) demanded that Canada release the arrested Huawei executive Meng Wanzhou or face serious consequences a move that Australian executives operating in China with technology Companies have been warned about.
Several have already been warned that they should leave China as a retaliation response could turn nasty.
Vice Foreign Minister Le Yucheng had summoned the Canadian ambassador and lodged a “strong protest”, a Chinese Ministry statement said.
The ministry described Ms Meng’s arrest as “extremely nasty”.
Ms Meng, Huawei’s chief financial officer and daughter of the firm’s founder, is accused of breaking US sanctions on Iran.
She was held in Vancouver last Saturday and faces extradition to the US, where she could be jailed for up to 30 years if found guilty.
China insists that she has not violated any laws.
Prosecutors argued she should not be granted bail because she may flee, a lawyer representing Canada said.The Crown attorney argued against granting Meng bail because she’s so wealthy that she will easily be able to pay whatever is required and then flee, it was also pointed out that she had already stopped travelling via the USA as she had been made aware of the investigation.
At the heart of the case is the claim that banks in the U.S. cleared money for Huawei, but unbeknownst to these financial firms, they were conducting business with Skycom in contravention of the sanctions, the lawyer said.
Skycom was dissolved last year shortly after Huawei executives became aware of an investigation, according to Hong Kong filings.
Skycom employees worked for Huawei, the U.S. alleged.
Meng was said to have been a director of Skycom at one point. Another director of Skycom, Hu Mei, appeared to have a Huawei email address and was listed in that company’s employee directory, Reuters reported.
Skycom also tried to sell $1.7 million worth of Hewlett-Packard Co. computer gear in late 2010, according to Reuters.
Bloomberg said that in her dealings with the banks, Meng hid ties between Huawei and Skycom, when in fact Skycom employees worked for the Chinese telecom-equipment giant, solicitor Gibb-Carsley added.
He noted that some Skycom workers used Huawei email addresses and employees in Iran used a different set of stationary.
Canada is presenting the case against Meng on behalf of the U.S., which wants to extradite her. The hearing in Vancouver is the start of a long legal process in Canada that could end with Meng being sent to the U.S. to stand trial.
Some claim that if the case drags on in Canada she may agree to go to the USA in an effort to clear her name and fight the allegations.