The Sydney Morning Herald on May 31, 2018 published a front-page report stating that court documents filed in the US establish that the Chinese telecommunications company ZTE, was established partly as a front for military intelligence and has been linked to corruption in 18 countries. The claims form part of an ongoing commercial litigation case filed in Texas, alleging that ZTE bribed Liberian officials, to unseat a US company which had won the right to upgrade the West African country’s telecommunications networks. The Summary of Claims filed in the US 191st District Court of Dallas state “China's Ministry of Aerospace founded ZTE as a front to send officers abroad under non-diplomatic covers such as scientists, businessmen and executives for the purpose of collecting intelligence.” In late April 2018, Washington banned US firms from doing business with ZTE for seven years, after it breached sanctions with Iran and North Korea, effectively crippling the company. Australia’s Home Affairs Department has also indicated it is considering imposing sanctions on ZTE, after the US ban and separate measures in Britain which effectively prevent UK companies from using ZTE equipment. The court documents contain sworn testimony from two senior Liberian telecommunications executives claiming widespread corruption of government officials in their country by ZTE between 2005 and 2007. The allegations add further weight to a May 14 report by Fairfax Media which documented institutionalised corruption within ZTE and detailed how the company had paid $US12.8 million in bribes to secure a contract in the West African country of Benin.The filings provide the first sworn testimony about ZTE staff paying bribes to win contracts. The Council on Ethics also pointed to serious corruption allegations being made against ZTE in the Philippines, Myanmar, Nigeria and Liberia, while there were corruption findings against the company in Zambia and Kenya.
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