ZTE Corporation says govt did approve MoU

 THE Government has approved a memorandum of understanding with the 

Chinese telecommunication company ZTE Corporation.

ZTE managing director Peter Poon said this yesterday after Prime Minister Peter O’Neill raised concerns on a memorandum signed by Public Enterprise and State Investments Minister Ben Micah committing the state to a US$300 million (K630.27 million) satellite communications project with two Chinese firms.

The deal involved the design, manufacture and launch of a project in orbit, delivery of PNG’s first telecommunication satellite by ZTE and the China Great Wall Industry.

In a statement to The National, the prime minister raised concerns over the memorandum with ZTE Corporation of China following the arrest of two of its senior executives in Singapore over corrupt practices.

But Poon said: “ZTE can confirm no such events took place in Singapore. 

“The article misrepresented ZTE’s participation in the investigation by House Permanent Select Committee on 

intelligence in the United States.

“Xiao Dong is the senior vice-president for China Great Wall Aerospace Corporation and not ZTE as stated.

“The MoU has been passed and accepted by the NEC in Papua New Guinea. 

“ZTE obtained confirmation from China Great Wall that no letter of termination had been received from the government of PNG.”