Date
22 September 2019
A demonstrator holds a sign protesting China's treatment of Uighur people in Xinjiang during a court appearance by Huawei CFO Meng Wanzhou in Vancouver on Wednesday. Photo: Reuters
A demonstrator holds a sign protesting China's treatment of Uighur people in Xinjiang during a court appearance by Huawei CFO Meng Wanzhou in Vancouver on Wednesday. Photo: Reuters

Huawei CFO to seek extradition stay, citing Trump comments

Huawei’s chief financial officer intends to seek a stay on extradition proceedings in part based on statements by US President Donald Trump about the case, which her lawyers say disqualifies the United States from pursuing the matter in Canada, Reuters reports.

Meng Wanzhou, 47, the daughter of Huawei Technologies Co. Ltd.’s billionaire founder Ren Zhengfei, was arrested at Vancouver’s airport in December on a US warrant and is fighting extradition on fraud charges that she misled global banks about Huawei’s relationship with a company operating in Iran.

Meng’s defense lawyers said in a document that she has been unlawfully detained in Canada and that there is no evidence she misrepresented to a bank Huawei’s relationship with a company operating in Iran called Skycom, thereby putting the bank at risk of violating US sanctions law, or that the bank relied on her statements.

The bank has been identified as HSBC (00005.HK). HSBC did not immediately respond to a request for comment.

Huawei has previously said Skycom was a local business partner in Iran, while the United States maintains it was an unofficial subsidiary used to conceal Huawei’s Iran business.

Meng defense lawyer Scott Fenton told the court that during her three-hour detention in December, Meng’s rights “were placed in total suspension”.

The lawyers also claim Meng cannot be extradited because Canada should not extradite a person to face punishment for conduct that is not criminal in Canada.

The bank and wire fraud charges do not meet that criteria because Meng is accused of encouraging HSBC to engage in transactions that violate US sanctions laws. But there would be no risk of fines or forfeiture for any bank in Canada.

“Put another way, the alleged offense could only exist in a country that prohibits international financial transactions in relation to Iran,” the lawyers said in court documents. “Canada is no longer such a country.”

Meng will next appear in court on Sept. 23, when her defense will make more applications for more disclosure. No date has been yet set for an extradition hearing, a process that could take years.

Her case has attracted global attention and sparked a diplomatic crisis between Beijing and Ottawa. China has repeatedly demanded Meng’s release.

Huawei said in a statement on Wednesday that the criminal case against Meng is based on allegations that are simply not true, adding that the US-ordered arrest was “guided by political considerations and tactics, not by the rule of law”.

Huawei and Skycom are also defendants in the US case, accused of bank and wire fraud, as well as violating US sanctions on Iran.

Meng lawyers said comments by Trump, who told Reuters the charges against Meng could be dropped if that would help China trade talks, disqualify the US from pursuing the case further in Canadian courts.

Justice Holmes granted Meng’s request to move to a larger second mansion she owns in Vancouver, for security reasons.

The relocation is sure to deepen the anger of some Canadians at the difference between her lifestyle and how two Canadians are being held in a Chinese detention center, said Paul Evans, a professor at the University of British Columbia’s School of Public Policy and Global Affairs.

In recent weeks, China has upped the pressure on Canada and halted Canadian canola imports and suspended the permits of two major pork producers.

Meanwhile, a second Huawei Canada executive has left the company, Reuters reported on Tuesday.

Meng was released from jail in December on C$10 million (US$7.5 million) bail and must wear a GPS tracker, an ankle bracelet and pay for security guards. She has been living in a Vancouver home valued at C$5.6 million in 2017.

She arrived at court, wearing an elegant full-length black and gray weave-pattern dress, with the ankle monitor prominently visible.

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