Bloomberg News

China Bribe Case Cites Ericsson, Huawei Payoffs, Caixin Reports

October 11, 2011

Oct. 11 (Bloomberg) -- A former Chongqing official who later became a China Mobile Communications Corp. executive allegedly took bribes from Ericsson AB and Huawei Technologies Co. in exchange for awarding contracts, Caixin Online reported.

The former official is accused of accepting a total of 36.2 million yuan ($5.7 million) dating to at least 1996, when he was Chongqing Telecom Bureau deputy director, Caixin reported, citing prosecutors at a trial that began yesterday in the southwestern city. The accused man was president of China Mobile’s local branch.

Ross Gan, a spokesman for Shenzhen-based Huawei, declined to comment on the Caixin report when contacted by Bloomberg News today. Ericsson is aware that an executive of one of their agents is mentioned in the case, the company said in a statement forwarded by spokeswoman Melody Li. If allegations that the executive bribed people are true, it would be “a severe breach” of his agreement with Ericsson, the company said.

--Edmond Lococo. Editors: Dave McCombs, Michael Tighe

To contact Bloomberg News staff for this story: Edmond Lococo in Beijing at elococo@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net


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