Huawei Responds To CFO’s Arrest In Canada For Extradition To The US
UPDATE: Huawei CFO facing fraud charges re company’s links to a firm that tried to sell equipment to Iran despite sanctions. Friday afternoon a Canadian prosecutor said in the bail hearing. After 6 hrs of arguments for and against no decision was reached and the hearing was adjourned until Monday 10:00a PST
Huawei Technologies (a private company) CFO Meng Wanzhou is facing extradition to the US after she was arrested in Vancouver, Canada, on Saturday.
Ms. Meng, the daughter of Huawei’s founder Ren Zhengfei, holds the positions of CFO and deputy-Chairman at the company. Her bail hearing has been set for Friday.
Huawei released a statement Thursday morning stating that Ms. Meng was provisionally detained by the Canadian Authorities on behalf of the US, which is seeking her extradition to face unspecified charges in the Eastern District of New York.
“The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng,” Huawei said.
“The company believes the Canadian and US legal systems will ultimately reach a just conclusion. Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and EU.”
The arrest is thought to stem from violations of US sanctions, according to various reports.
Huawei’s rival ZTE Corp. (OTCMKT:ZTCOF) has repeatedly been found guilty of violating US sanctions against Iran and NKorea.
In April this year, the US Commerce Department found ZTE had violated a settlement reached in Y 2017 and banned US companies from exporting components to the Chinese telecom company.
The punishment was effectively a “death penalty” for ZTE that forced the company to shut down most of its operations and even led to China’s President Xi Jinping intervening to save the company from bankruptcy.
In June, ZTE reached another agreement with US authorities to pay a total of $1.4-B in fines and overhaul its senior management ranks in exchange for removing the ban.
Founded by Mr. Ren in Y 1987, Huawei has grown to become the world’s largest provider of telecom equipment, and the world’s #2 seller of Smartphones. The company reported that is total revenue for Y 2017 jumped 29% to reach $92.5-B.