Hasta La Gadget!

ZTE might already be feeling heat from Congressional suspicions, but the company could soon take a more direct hit to the pocketbook. Cisco has reportedly dropped an already rocky seven-year deal with ZTE after it learned that the Chinese firm had been selling Cisco’s networking gear to the Telecommunication Company of Iran as recently as July of last year. Being implicated in an end-run around US trade sanctions isn’t great for business, as you’d imagine. While Cisco CEO John Chambers wouldn’t directly confirm the severed link in a chat with Reuters, he noted that we would “not see that [sort of deal] happen again” — an indication that his company at least isn’t happy with the current state of affairs. ZTE isn’t waiting for any public acknowledgment to voice its frustration and says it’s “highly concerned,” although it’s not helped by allegations from its own US general counsel that there was an attempt to cover up the Iranian link. Nothing is definite until the investigations go public, but the Iran connection could make it that much harder for ZTE to keep US customers regardless of its distance from the Chinese government.

Filed under: Networking

Cisco reportedly drops sales pact with ZTE after claims of roundabout Iran dealings originally appeared on Engadget on Mon, 08 Oct 2012 11:14:00 EDT. Please see our terms for use of feeds.

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The legal system’s engines can take awhile to get churning, but there’s no questioning the impact when they’re at full bore. German prosecutors have wrapped up an almost three-year investigation into allegations of HP managers’ bribery by charging the executives involved. Hilmar Lorenz, Päivi Tiippana and Ken Willett, along with claimed accomplice Ralf Krippner, have all been indicted for supposedly funneling €7.5 million ($9.7 million) in bribes through a German subsidiary and far-flung shell accounts to land a €35 million ($45.3 million) PC supply deal with Russia’s Prosecutor General Office early in the previous decade. While only the people directly attached to the scandal currently face any consequences if found guilty, German lawyers are motioning to have the PC builder attached to the case, and there’s a chance the formal charges could fuel an ongoing US investigation. HP is cooperating even as it’s trying to distance itself from the indictments as much as possible — these are for old allegations and a “former HP company,” it says. While we don’t yet know the whole story, it may be a protracted tale knowing that at least Tiippana and Willett plan to fight the accusations.

Filed under: Desktops, Laptops

German prosecution charges HP staff with bribing Russian officials to clinch PC contract originally appeared on Engadget on Thu, 20 Sep 2012 10:41:00 EDT. Please see our terms for use of feeds.

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