Huawei and ZTE caught up in bribery scandal in Algeria

Huawei and ZTE have been banned from tendering for state contracts in Algeria for two years and been fined by a local court after being found guilty of bribing executives at the state owned telecom operator, Algérie Télécom.

Local media reports named a former executive at the telco, Mohamed Boukhari and a businessman, Chami Madjdoub as being found guilty of receiving illegal payments and money laundering to conceal the sources of those payments.

The alleged bribery took place between 2003 and 2006 and the two men have been sentenced to 18 years in prison, have had their property confiscated, and been fined DZD 5 million (US$64,000) each.

The two companies have themselves also been fined DZD3 million each and banned from tendering with state-owned companies for two years.

Three Chinese officials, Dong Tao, Chen Zhibo and Xiao Chuhfa were sentenced in their absence to 10 years in prison and an international arrest warrant has been issued for their extradition back to the country.

The two companies denied the allegations and presented themselves as victims of the bribery as well.