Nuctech

Nuctech Co., Ltd (同方威视技术股份有限公司, formerly 威视股份) is a company created in 1997 as an offshoot of Tsinghua University.[1] The company was headed by Hu Haifeng, son of then General Secretary of the Communist Party of China Hu Jintao until 2008.[2] Subsequent chairmen include Rong Yonglin, Zhou Liye, current chairman is Chen Zhiqiang.[3] While the company’s products have been lauded from customers around the world, Nuctech’s business practices have come under increased scrutiny abroad.[1]

Nuctech
Founded1997 (1997)
Headquarters,
People's Republic of China
Websitewww.nuctech.com/en/SitePages/HomePage.aspx 

Overview

Nuctech X-Ray scanner truck

Nuctech Company Limited manufactures security inspection products. The services are provided for civil aviation, customs, railway, highway among others.[4]

History

Nuctech Company Limited was founded in 1997 and is based in Beijing, the company was formerly known as Nuclear Technology Company Ltd. and changed its name to Nuctech Company Limited in March 2002.

2006

In late 2006, the company won a contract to install advanced scanners at all 147 of China's airports to detect potentially dangerous liquids.[1]

The Philippine government bought 30 units of mobile X-ray equipment through a loan agreement with the Chinese government for a total value of P7.953 billion. Ten years later, it was reported that the Philippine Commission on Audit found that the contract had been exorbitantly overpriced. A quotation from another supplier showed that an X-ray machine with vastly superior performance only cost P124.6 million each, for a total of P3.738 billion for thirty units, P4.215 billion less than Nuctech's alleged inferior product. State auditors clarified that the price inquiry was made despite the difficulty in providing an accurate unit price and full specifications of Nuctech's machines. The COA also found that the maintenance cost of the X-ray machines from Nuctech was also more expensive by P3.264 million compared to other suppliers. The COA asked the Bureau of Customs to review the original contract and evaluate the deal.[5]

2009

On July 21, 2009 Nuctech representative Yang Fan (杨帆) and two Namibians, Teckla Lameck and Jerobeam Mokaxwa, were arrested after Namibia’s Anti-Corruption Commission (ACC) discovered that a US$12.8 million down payment on 13 scanners had been diverted to a firm called Teko Trading owned by the two Namibians.[2] Namibia prosecutors accuse them of joining in a bribery scheme that secured a $55.3 million contract in May 2008 to install Nuctech scanners at customs inspection points across Namibia.[2] Other sources report the contract to be worth $69 million.[6]

Netizens in China were blocked from accessing stories about the son of Hu Jintao in the wake of the scandal. Leading Chinese web portals, Sina and NetEase, could not be opened for several hours after they posted reports about the company linked to Hu Haifeng.[6] The report related to Hu Haifeng had been deleted from both web sites when their technology sections came back online.[7] An industry insider who declined to give his name said that both Sina and Netease were likely to face official sanctions.[7] Neither company confirmed that the sites had been blocked by the authorities or that their blockage was linked to any content. A customer service executive at Sina.com said the site had experienced technical problems.[7]

General Martin Shalli was a veteran fighter for Namibian independence, who joined SWAPO in 1974, having undergone training in the former Soviet Union.[6] After the corruption case, he was suspended by Namibian president Hifikepunye Pohamba for allegedly having millions of Namibian dollars transferred to him through Nuctech.[8] No details were given on the probe, but the Namibian daily reported possible links between Shalli and a Chinese company that supplies the Namibia Defence Force.[8]

2015

On December 1, 2015 Côte d'Ivoire acquired two mobile X-ray scanners to boost the efficiency of its customs services. A first for the country, intended to fight against fraud and illegal products, and to optimize the mobilization of its internal resources.[9]

2016

On July 29, 2016 over 250 Nuctech security scanners have been installed for the 2016 Olympic and Paralympic Games in Rio de Janeiro, Brazil. The scanners were intended to be responsible for 90 percent of security checks at the Rio Games.[10]

2018

On October 17, 2018 Nuctech provided full body scanners, similar to what passengers go through at airport security, to a jail at the entrance for inmates who have permission to leave the jail for work, job training or medical appointments in Dane County, Wisconsin. [11]

On September 11, 2018 Nuctech was the security equipment supplier at the 18th Asian Games in Jakarta and Palembang, Indonesia. [12]

On October 31, 2018 Nuctech provided the Youth Olympic Games Buenos Aires with nearly 300 sets of security inspection equipment, including baggage inspection systems, handheld detectors and other devices. [13]

Controversies

On July 19, 2009 the Telegraph reported that Nuctech was under EU investigation following accusations of illegal dumping.[14]

On July 21, 2009 Nuctech representative Yang Fan (杨帆) and two Namibians, Teckla Lameck and Jerobeam Mokaxwa, were arrested after Namibia’s Anti-Corruption Commission (ACC) uncovered a bribery scheme which included diverting downpayments to the two Namibians that secured a contract to install Nuctech products. Worldwide reports supected Nuctech of fraud and corruption in Europe, Namibia and the Philippines.[15]

In June 2010, the EU imposed a five-year tariff for alleged dumping its products on the European market.[16]

In 2016 it was found that the Philippine government bought exorbitantly overpriced x-ray machines that were costly to repair and also failed quality expectations.[5]

Taipei Times reported Taiwan's former head of the Aviation Police Bureau’s aviation security section found guilty on corruption charges in relation to a procurement project involving Nuctech.[17]

References

  1. NYTimes.com. "NYTimes.com." Graft Inquiry in Namibia Finds Clues in China . Retrieved on 2009-07-27.
  2. Taipeitimes.com. "Taipeitimes.com." China Internet blackout linked to leader's son. Retrieved on 2009-07-27.
  3. "Nuctech Company Limited". dun&bradstreet. Retrieved 2 April 2020.
  4. www.bloomberg.com“."Company Overview of Nuctech Company Limited. Retrieved on 2018-11-02.
  5. Bonquin, Carolyn. "COA: X-ray trucks bought from China overpriced by P4.2-B". ABS-CBN. Retrieved 24 May 2020.
  6. Australian.news.com.au. "Australian news." Namibian army sacking a new twist in Hu Jintao son's case. Retrieved on 2009-07-27.
  7. RFA.org. "RFA.org." China Censors News of Hu's Son. Retrieved on 2009-07-27.
  8. Ca.yahoo.com. Ca.yahoo.com. "Namibian president suspends defence chief", Retrieved on 2009-07-27.
  9. http://www.financialafrik.com“."La Côte d’Ivoire se dote de deux scanners mobiles pour renforcer le contrôle douanier. Retrieved on 2015-12-01.
  10. http://www.prnewswire.com“."Nuctech Finalizes Security Measures for 2016 Rio Olympics Ahead of Next Week's Site-Clearing. Retrieved on 2016-07-29.
  11. www.madison.com “." Dane County Jail acquires body scanners to screen for contraband. Retrieved on 2018-10-17.
  12. www.prnewswire.com “."Nuctech provided security equipment and services for the 2018 Asian Games. Retrieved on 2018-09-11.
  13. www.prnewswire.com “." Nuctech Supported the Summer Youth Olympic Games Buenos Aires 2018. Retrieved on 2018-10-31.
  14. Aldrick, Philip. "European Union probes Chinese 'soft loans' over NucTech". The Telegraph. Retrieved 24 May 2020.
  15. "Investigations into corruption in a Chinese company connected to the son of Hu Jintao". AsiaNews. Retrieved 24 May 2020.
  16. Freedman, Jennifer M. "Chinese Duties on EU X-Ray Gear Violate Global Rules: WTO". Bloomberg. Retrieved 28 March 2020.
  17. Pan, Jason. "Ex-Aviation Police Bureau official guilty of corruption". Taipei Times. Retrieved 28 March 2020.
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