ZTE may face USD 1 billion fine in US over alleged bribery: Reuters

The Chinese firm already paid penalties during the first term of US President Donald Trump.

File photo: ZTE logo

ZTE assures compliance with the system

China's ZTE Corp. may pay over USD 1 billion or nearly PHP 60 billion to the US government to resolve the allegations of foreign bribery, sources told Reuters.

In its report, Reuters noted that the Chinese telecoms equipment manufacturer already paid USD 2 billion or nearly PHP 119 billion for penalties over export violations during the Trump administration's first term.

This year, US Justice authorities moved ahead with an investigation into ZTE for allegedly violating the Foreign Corrupt Practices Act (FCPA) in South America and other regions, the sources said. The act prohibits payments or anything of value to foreign officials to obtain business.

The report said that US officials are working on a resolution that could lead to the payment of over USD 1 billion, or possibly even USD 2 billion or more.

ZTE said in a regulatory filing in Hong Kong that it is engaged in "ongoing communication" with the Justice Department on the investigation.

The Company consistently commits to comprehensively strengthening its compliance system and building an industry-leading compliance framework, ZTE added.

The Company opposes all forms of corruption and maintains a zero-tolerance policy toward any individuals who may be involved in such activities.

Reuters said it remains unclear when a deal might be reached. A settlement with the U.S. would require approval from the Chinese government, the sources said.

Liu Pengyu, a spokesman for the Chinese embassy in Washington, said he was not aware of the specifics of the ZTE matter, but added, "China has always required Chinese companies to operate legally abroad and abide by local laws and regulations."

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Via: Reuters