UTStarcom May Have Broken US Law in China
UTStarcom is the largest supplier of wireless-telephone systems in China.
Now it is investigating whether or not it may have violated the US Foreign Corrupt Practices Act.
The US Securities and Exchange Commission as well as the Justice Department are now in on the act.
It seems an overly eager agent of the company working in Mongolia may have overstepped the boundaries by offering payments to government officials – otherwise known as bribes.
Yep, that would be a violation alright, wouldn’t it?
UTStarcom is likely to face fines and sanctions, no doubt much smaller than the money they will make overall or the bribes that were paid….but then I hope I am wrong.
In any event, there is corruption on both sides of the pond, isn’t there?
What do you think?
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05/06/2006
Wow, it is a big news!
UTStarcom got a huge development during about 2002~2004, it profited from the high charge for the mobile bill, and then the China Telecom developed the PHS/PAS wireless-telephone system. This system can provide a cheaper way for communication, but some experts opposed the system, they said it was an outdated technology, once the bill of mobile were reduced, the customers won’t choose the PHS/PAS service, and all the investments of the system would be wasted.
UTStarcom is lucky, the China Telecom chose the system at last, and UTStarcom got the great deal.
But from the last year, we heard little news about the company. Yes, these experts were right, people now prefer to the mobile phone, and it seems there were some wrongs with their finance. I think the company needs to develop some new businesses for survival.
05/06/2006
I always enjoy your comments because you can give me some insight that I cannot get from so far away.
Thanks June!