London: Cisco Systems has ended a long-standing sales partnership with ZTE Corp after an internal investigation into allegations that the Chinese telecommunications equipment maker sold Cisco networking gear to Iran.
Cisco’s probe followed stories by Reuters in March and April that documented how Shenzhen, China-based ZTE had sold banned computer equipment from Cisco and other US companies to Iran’s largest telecom firm. ZTE also agreed last year to ship millions of dollars worth of additional US tech products, including Cisco switches, to a unit of the consortium that controls the telecom firm. The stories sparked internal probes by the companies involved, as well as investigations by the US Commerce Department, a congressional committee, and the Federal Bureau of Investigation.
ZTE’s general counsel at its Texas-based subsidiary alleged that the parent company plotted a cover-up, including possibly shredding documents, after the first Reuters story broke. The FBI has launched a criminal probe into the allegations.
