ZTE Corp may pay over $1 billion to resolve US bribery allegations as investigations into foreign corrupt practices escalate.
Chinese telecom equipment maker ZTE Corp is reportedly preparing to pay more than $1 billion to the US government to settle longstanding allegations of foreign bribery.
This year, the US Justice Department has intensified its investigation into ZTE, focusing on alleged violations of the Foreign Corrupt Practices Act in South America and other regions. This act prohibits payments or anything of value to foreign officials to secure business.
US officials are currently negotiating a resolution that could see ZTE facing a penalty exceeding $1 billion. One source indicated that the total penalty could potentially reach $2 billion or more, based partly on alleged gains from corrupt contracts.
