In yet another fallout for China, Canada has sought to review $6.8 million worth of security equipment purchased from a Beijing-based company that has been found to have connections with the highest levels of the Chinese Communist Party.
According to media reports, Canada posted details that Beijing-based Nuctech, a company owned by the Chinese government and founded by the son of former General Secretary of the Chinese Communist Party, Hu Jintao, has been awarded a deal by Global Affairs Canada (GAC) to install X-ray scanning equipment and software systems to provide security for 170 Canadian embassies, consulates and high commissions worldwide.
Foreign Minister Francois-Phillipe Champagne has promised to review “any possible issue relative to security or safety … all appropriate actions (will be) taken to ensure the safety of our missions around the world.”
Responding to questions from the media, Champagne, in a statement, said, “We are currently looking into the offer with Nuctech company to provide some security screening equipment in our missions abroad. Global Affairs has not purchased any equipment from Nuctech at this time.”
“In addition, I have today directed GAC officials to review our purchasing practices when it comes to security equipment and to continue reviewing the security of our missions around the world,” the statement read further.
Despite growing concerns among some national security experts about Nuctech’s access to sensitive facilities worldwide, the deal has reportedly been signed. Nuctech has been accused in the past of engaging in controversial business practices in Asia, Africa and Europe, including offering soft loans and illegal dumping.
Earlier, reports have emerged of an alleged corruption case in Namibia involving Nuctech. According to Namibian prosecutors, in May 2008, three suspects allegedly received $12.8 million in kickbacks to help Nuctech secure a $55-million X-ray scanner contract.
In Europe, some analysts are complaining that Nuctech is making rapid inroads providing services to border security facilities due to China’s state-backing, unfair practices, and potentially Beijing’s influence over some European politicians.
Carleton University professor Stephanie Carvin, a former Canadian Security Intelligence Service official, said the Nuctech contract for Canadian embassies presents security concerns, but she believes China’s “geo-economic” strategy is the bigger concern.
“The issue is the fact companies like Nuctech are inherently anti-competitive, they may in some cases be beneficiaries of stolen technologies, and they want to fundamentally take over and undermine western technologies,” Carvin said.