LONDON/SAO PAULO: An obscure Hong Kong-registered company stands at the center of the U.S. criminal case against China's Huawei Technologies and its chief financial officer.
Huawei's relationship with Skycom is central to the high-profile U.S. criminal case. A U.S. indictment alleges Huawei controlled Skycom and used it to violate American sanctions by obtaining embargoed U.S. computer gear in Iran. Huawei and Meng have maintained that while Huawei once owned Skycom, the firm later became in effect an arms-length business partner.
Last year, the U.S. Department of Commerce added Huawei and scores of its affiliates, including Hua Ying, to its so-called"Entity List." That move restricted sales of U.S. goods and technology to Huawei. Washington said the affiliates"pose a significant risk of involvement in activities contrary to the national security or foreign policy interests of the United States."
For example, in July 2008, Huawei Brazil's two shareholders at that time – Skycom and a Huawei affiliate called Huawei Tech Investment Co Ltd – each appointed the same Chinese person to represent them at Huawei Brazil. The documents also show that Meng, who was then serving on the boards of both shareholding companies, authorized the appointments.
In June, Reuters reported that following its 2013 article, Huawei acted to cover up its relationship with Skycom in Iran, according to internal Huawei documents. Huawei declined to comment on the story.