Heidi Kingstone is a journalist and author covering human rights issues,
conflict and politics. Her most recent book is “Genocide: Personal Stories, Big
Questions.”
Slavery is alive and thriving, and it’s wrapped inside shiny chocolate bars that
promise to be “fair trade,” “child-labor free” and “sustainable.”
In West Africa, which produces more than 60 percent of the world’s cocoa, over
1.5 million children still work under hazardous conditions. Kids, some as young
as five, use machetes to crack pods open in their hands, carry loads that weigh
more than they do and spray toxic pesticides without protection.
Meanwhile, of the roughly 2 million metric tons of cocoa the Ivory Coast
produces each year, between 20 percent and 30 percent is grown illegally in
protected forests. And satellite data from Global Forest Watch shows an increase
in deforestation across key cocoa-growing regions as farmers, desperate for
income, push deeper into forest reserves.
The bitter truth is that despite decades of pledges, certification schemes and
packaging glowing with virtue — of forests saved, farmers empowered and
consciences soothed — most chocolate companies have failed to eradicate
exploitation from their supply chains.
Today, many cocoa farmers in the Ivory Coast and Ghana still earn less than a
dollar a day, well below the poverty line. According to a 2024 report by the
International Cocoa Initiative, the average farmer earns only 40 percent of a
living wage.
Put starkly, as the global chocolate market swells close to a $150 billion a
year in 2025, the average farmer now receives less than 6 percent of the value
of a single chocolate bar, whereas in the 1970s they received more than 50
percent.
Then there’s the use of child labor, which is essentially woven into the fabric
of this economy, where we have been sold the illusion of progress. From the 2001
Harkin-Engel Protocol — a voluntary agreement to end child labor by the world’s
chocolate giants — to today’s glossy environmental, social and governance (ESG)
reports, every initiative has promised progress and delivered delay.
In 2007, the industry quietly redefined “public certification,” shifting it from
a commitment to consumer labeling to a vague pledge to compile statistics on
labor conditions. It missed the original 2010 deadline to eliminate child labor,
as well as a new target to reduce it by 70 percent by 2020. And that year, a
study by the University of Chicago’s National Opinion Research Center found that
hazardous child labor in cocoa production increased from 2008 to 2019.
“We covered a story about a ship carrying trafficked children,” recalled
journalist Humphrey Hawksley, who first exposed the issue in the BBC documentary
called Slavery: A Global Investigation. “The chocolate companies refused to
comment and spoke as one industry. That was their rule. Even now, none of them
is slave-free,” he added.
As it stands, many of the more than 1.5 million West African children working in
cocoa production are trafficked from neighboring Burkina Faso and Mali.
Traffickers lure them with false promises or outright abduction, offering
children as young as 10 either bicycles or small sums to travel to the Ivory
Coast. There, they are sold to farmers for as little as $34 each.
And once on these farms, they are trapped. They work up to 14 hours a day, sleep
in windowless sheds with no clean water or toilets, and most never see the
inside of a classroom.
Last but not least, we come to deforestation: Since its independence, more than
90 percent of the Ivory Coast’s forests have disappeared due to cocoa farming.
In 2024, deforestation accelerated despite corporate commitments to halt it by
2025, as declining soil fertility and stagnant prices pushed farmers farther
into the forest to plant new cocoa trees.
But as Reuters Correspondent for West and Central Africa Ange Aboa described
them, such labels are “the biggest scam of the century!” | Lena Klimkeit/Picture
Alliance via Getty Images
Certification labels like “Rainforest Alliance” and “Fairtrade” are supposed to
prevent this. But as Reuters Correspondent for West and Central Africa Ange Aboa
described them, such labels are “the biggest scam of the century!”
Complicit in all of this are the financiers and investors who profit. For
example, Norway’s sovereign wealth fund is the world’s largest investor, and
Norges Bank Investment Management (NBIM) is a shareholder in 9,000 corporations,
including Nestlé, Mondelez, Hershey, Barry Callebaut and Lindt — all part of the
direct chocolate cluster. NBIM also has shares in McDonald’s, Starbucks,
Unilever, the Dunkin’ parent company and Tim Hortons — the indirect high-volume
buyer cluster.
“The richest families in cocoa — the Marses, the Ferreros, the Cargills, the
Jacobs — are billionaires thanks to the exploitation of the poorest children on
earth,” said journalist and human rights campaigner Fernando Morales-de la Cruz,
the founder of Cacao for Change. “And countries like Norway, which claim to be
ethical, profit from slavery and child labor.”
The problem is, few are asking who picks the cocoa. And though the EU’s
Corporate Sustainability Due Diligence Directive, which was adopted last year,
requires large companies to address human rights and environmental abuses in
their supply chains, critics say the directive’s weaknesses, loopholes, and
delayed enforcement will blunt its impact.
However, all of this could still be fixed. Currently, a metric ton of cocoa
sells for about $5,000 on world markets, but Morales-de la Cruz estimates that a
fair farm-gate price would be around $7,500 per metric ton. To that end, he
advocates for binding international trade standards that enforce living incomes
and transparent pricing, modeled on the World Trade Organization’s compliance
mechanisms. “Human rights should be as binding in trade as tariffs,” he
insisted.
The solution isn’t to buy more “ethical” bars but to demand accountability and
support legislation that makes exploitation unprofitable. “We can’t shop our way
to justice,” he said.
So, as the trees in the Ivory Coast’s forests fall, the profits in Europe and
North America continue to soar. And two decades after the industry vowed to end
child labor, the cocoa supply chain remains one of the world’s most exploitative
and least accountable.
Moreover, the European Parliament’s vote on the Omnibus simplification package
last month laid bare the corporate control and moral blindness still present in
EU policymaking, all behind talk of “cutting red tape.” “Yet Europe’s media and
EU-funded NGOs stay silent, talking of competitiveness and green transitions,
while ignoring the children who harvest its cocoa, coffee and cotton,” said
Morales-de la Cruz.
“Europe cannot claim to defend human rights while profiting from exploitation.”
However, until the industry pays a fair price and governments enforce real
accountability, every bar of chocolate remains an unpaid moral debt.
Tag - Certification and standards
BRUSSELS — First it was telecom snooping. Now Europe is growing worried that
Huawei could turn the lights off.
The Chinese tech giant is at the heart of a brewing storm over the security of
Europe’s energy grids. Lawmakers are writing to the European Commission to urge
it to “restrict high-risk vendors” from solar energy systems, in a letter seen
by POLITICO. Such restrictions would target Huawei first and foremost, as the
dominant Chinese supplier of critical parts of these systems.
The fears center around solar panel inverters, a piece of technology that turns
solar panels’ electricity into current that flows into the grid. China is a
dominant supplier of these inverters, and Huawei is its biggest player. Because
the inverters are hooked up to the internet, security experts warn the inverters
could be tampered with or shut down through remote access, potentially causing
dangerous surges or drops in electricity in Europe’s networks.
The warnings come as European governments have woken up to the risks of being
reliant on other regions for critical services — from Russian gas to Chinese
critical raw materials and American digital services. The bloc is in a stand-off
with Beijing over trade in raw materials, and has faced months of pressure from
Washington on how Brussels regulates U.S. tech giants.
Cybersecurity authorities are close to finalizing work on a new “toolbox” to
de-risk tech supply chains, with solar panels among its key target sectors,
alongside connected cars and smart cameras.
Two members of the European Parliament, Dutch liberal Bart Groothuis and Slovak
center-right lawmaker Miriam Lexmann, drafted a letter warning the European
Commission of the risks. “We urge you to propose immediate and binding measures
to restrict high-risk vendors from our critical infrastructure,” the two wrote.
The members had gathered the support of a dozen colleagues by Wednesday and are
canvassing for more to join the initiative before sending the letter mid next
week.
According to research by trade body SolarPower Europe, Chinese firms control
approximately 65 percent of the total installed power in the solar sector. The
largest company in the European market is Huawei, a tech giant that is
considered a high-risk vendor of telecom equipment. The second-largest firm is
Sungrow, which is also Chinese, and controls about half the amount of solar
power as Huawei.
Huawei’s market power recently allowed it to make its way back into SolarPower
Europe, the solar sector’s most prominent lobby association in Brussels, despite
an ongoing Belgian bribery investigation focused on the firm’s lobbying
activities in Brussels that saw it banned from meeting with European Commission
and Parliament officials.
Security hawks are now upping the ante. Cybersecurity experts and European
manufacturers say the Chinese conglomerate and its peers could hack into
Europe’s power grid.
“They can disable safety parameters. They can set it on fire,” Erika Langerová,
a cybersecurity researcher at the Czech Technical University in Prague, said in
a media briefing hosted by the U.S. Mission to the EU in September.
Even switching solar installation off and on again could disrupt energy supply,
Langerová said. “When you do it on one installation, it’s not a problem, but
then you do it on thousands of installations it becomes a problem because the …
compound effect of these sudden changes in the operation of the device can
destabilize the power grid.”
Surges in electricity supply can trigger wider blackouts, as seen in Spain and
Portugal in April. | Matias Chiofalo/Europa Press via Getty Images
Surges in electricity supply can trigger wider blackouts, as seen in Spain and
Portugal in April.
Some governments have already taken further measures. Last November, Lithuania
imposed a ban on remote access by Chinese firms to renewable energy
installations above 100 kilowatts, effectively stopping the use of Chinese
inverters. In September, the Czech Republic issued a warning on the threat posed
by Chinese remote access via components including solar inverters. And in
Germany, security officials already in 2023 told lawmakers that an “energy
management component” from Huawei had them on alert, leading to a government
probe of the firm’s equipment.
CHINESE CONTROL, EU RESPONSE
The arguments leveled against Chinese manufacturers of solar inverters echo
those heard from security experts in previous years, in debates on whether or
not to block companies like video-sharing app TikTok, airport scanner maker
Nuctech and — yes — Huawei’s 5G network equipment.
Distrust of Chinese technology has skyrocketed. Under President Xi Jinping, the
Beijing government has rolled out regulations forcing Chinese companies to
cooperate with security services’ requests to share data and flag
vulnerabilities in their software. It has led to Western concerns that it opens
the door to surveillance and snooping.
One of the most direct threats involves remote management from China of products
embedded in European critical infrastructure. Manufacturers have remote access
to install updates and maintenance.
Europe has also grown heavily reliant on Chinese tech suppliers, particularly
when it comes to renewable energy, which is powering an increasing proportion of
European energy. Domestic manufacturers of solar panels have enough supply to
fill the gap that any EU action to restrict Chinese inverters would create,
Langerová said. But Europe does not yet have enough battery or wind
manufacturers — two clean energy sector China also dominates.
China’s dominance also undercuts Europe’s own tech sector and comes with risks
of economic coercion. Until only a few years ago, European firms were
competitive, before being undercut by heavily subsidized Chinese products, said
Tobias Gehrke, a senior policy fellow at the European Council on Foreign
Relations. China on the other hand does not allow foreign firms in its market
because of cybersecurity concerns, he said.
The European Union previously developed a 5G security toolbox to reduce its
dependence on Huawei over these fears.
It is also working on a similar initiative, known as the ICT supply chain
toolbox, to help national governments scan their wider digital infrastructure
for weak points, with a view to blocking or reduce the use of “high-risk
suppliers.”
According to Groothuis and Lexmann, “binding legislation to restrict risky
vendors in our critical infrastructure is urgently required” across the European
Union. Until legislation is passed, the EU should put temporary measures in
place, they said in their letter.
Huawei did not respond to requests for comment before publication.
This article has been updated.
Amid concerns over sustainability fraud, the European biodiesel industry is
pushing for regulatory reform.
As Europe accelerates efforts to decarbonize transportation, biofuels have
emerged as an important solution. These CO2-neutral fuels ― derived from
sustainable feedstocks including crops and waste and residues ― are the leading
contributor to renewable energy in the transport sector, providing an immediate
and cost-effective substitute for conventional fuels.
Dickon Posnett, president, EBB
“If Europe is serious about decarbonizing transport, we should be encouraging
more biofuel use, not less.”
Evidence suggests some importers, particularly from China and Southeast Asia,
are circumventing sustainability standards, threatening to undermine both
climate progress and fair competition.
The European Biodiesel Board, representing EU producers, is raising concerns
over these practices. As the European Commission prepares to review rules on
biofuels verification, EBB President Dickon Posnett spoke with POLITICO Studio
about the critical need for stronger controls and a more level playing field.
From expanded audits to harmonized reporting, targeted changes can ensure the
system remains effective for legitimate businesses doing their bit to bring down
Europe’s transport emissions.
POLITICO Studio: Just how bad is the biofuel fraud problem and the impact on
European producers?
Dickon Posnett: By far, the majority of biofuels on the EU market are legitimate
and contribute to emission reduction. However, any level of fraud is a very big
concern for the biodiesel industry in Europe. There are two main effects. First,
by bringing in fraudulent biodiesel that’s not as sustainable as
claimed, they are cheating the EU’s climate ambitions and not achieving the
greenhouse gas reductions we should be. That’s unacceptable.
But perhaps even more damaging is the longer-term effect of eroding trust and
political confidence in our industry. Once that trust is eroded, the regulatory
support for decarbonization drops away. That hits everyone, including producers
abiding by the rules. Without those regulations, this market wouldn’t exist.
Fraud also depresses prices to an unrealistic level that has become
unsustainable for some European producers.
> Rules applying to domestic producers should be enforced just as strictly
> outside the EU.
PS: What are the most critical reforms needed to combat fraud and ensure fair
competition?
DP: The basic principle is that rules applying to domestic producers should be
enforced just as strictly outside the EU. For example, on-site audits should be
systematic in production facilities abroad, as is common in Europe.
Additionally, every producer should report the quantities, capacities and
feedstock use of the biofuels they make. There are a lot of rules about what
biofuels can count toward EU targets based on feedstock. Biofuels that offer the
highest greenhouse gas savings are therefore more susceptible to fraud. Shining
a light on how much biofuel you can realistically produce from these premium
feedstocks will prevent trickery. Some EU countries already require this. We
suggest it should apply to all biofuels on the EU market, regardless of where
they’re produced.
PS: Is it feasible to require non-EU producers to face the same strict
verification rules as European companies?
DP: Of course it is. All biofuels imported into the EU must have a Proof of
Sustainability. It’s perfectly reasonable to require all fuels used in the EU to
comply with EU sustainability rules. There is a verification system in place,
but we need to clarify requirements on audits and access to information. This
will enable authorities to oversee economic operators, voluntary schemes and
certification bodies, both inside and outside EU jurisdiction.
In fact, it can be done now. As the Commission reviews verification rules, we’ve
already drafted detailed amendments that can be implemented immediately.
PS: What key information should be added to the EU biofuels database to enable
better fraud detection?
DP: The Union Database for Biofuels is a major asset in fighting fraud. EBB has
been instrumental in its inception — in fact, it’s something we have been
striving for since 2012. It will fundamentally improve prevention once the
system is fully functional, hopefully by early 2026.
Via iStock
Beyond the core data, we’ve suggested including additional information such as
customs documents to clarify the origin of both the product and its
sustainability documentation, enabling us to match them up. We’re also proposing
links to national systems that record production capacities and feedstock use.
Having all this data integrated would make anomalies easier to spot and
investigate.
Overall, a centralized database dramatically improves traceability and
transparency. But it needs to be comprehensive and easily cross-referenced to
fulfill its potential as a fraud-busting tool.
PS: How can the revised rules boost European competitiveness and investment in
domestic biofuels?
DP: Confidence is key. The fraud issue has dented trust in biofuels and the
price effects have made investors wary, at a time when major investment is
needed to achieve our climate goals. Stronger verification will provide the
credibility and predictability needed to drive long-term growth.
The EU verification system relies on voluntary third-party verification based on
criteria established by the legislator, and we do not want to change this. We
build up on the current system and improve it. European producers are already
subject to strict standards. Biofuels produced outside the EU and their supply
chain are not subject to the same level of scrutiny. With a more level playing
field, the commitment of EU producers to sustainability becomes an asset.
Industries thrive when the rules are clear, consistent and rigorously enforced.
Having a comprehensive solution in place is critical. A hard-to-navigate
patchwork of caps and bans is not a viable solution. We’ve seen some calls to
cap or cut biofuel use. A few member countries are looking at restrictions.
That’s the opposite of what we need. If Europe is serious about decarbonizing
transport, we should be encouraging more biofuel use, not less. Tackling fraud
head-on removes a major barrier to doing that. It will take the brakes off
investments and innovations that can push this industry forward.
> A centralized database dramatically improves traceability and transparency.
PS: Beyond verification, what other policy or market measures could help build a
more resilient and sustainable European biofuels sector?
DP: We need a comprehensive strategy. Of course, verification is the foundation
because we have to shore up confidence. But we also need a stable, ambitious
policy framework to drive demand. The more certainty there is about the market
trajectory, the more investments will flow into expanding domestic production,
developing new feedstocks and improving technologies.
On the consumer side, education is important. We need people to understand the
benefits and safety of biofuels. There’s still work to do in fighting
misconceptions. Policymakers also have a role in incentivizing higher blends and
ensuring vehicles that are fully compatible are also labeled as such. A
renewable fuels infrastructure that’s convenient and accessible will boost
uptake.
The European Commission will no longer meet with organizations affiliated with
Huawei, following an investigation into alleged corruption at the European
Parliament that would have benefited the Chinese technology firm.
“The Commission shall not meet with any lobby groups and/or trade associations
that represent Huawei’s interests and/or speak on its behalf,” the Commission’s
spokesperson service told POLITICO in a statement.
The Commission had already banned “contact and meetings” with Huawei officials
in March, just days after Belgian investigators launched a corruption probe into
the Chinese technology company’s activities in Brussels. Wednesday’s statement
added the ban extended to “any intermediaries acting on Huawei’s behalf who
would engage in meetings and other contacts with Commission staff to advance the
interests of the company.”
At least eight people have been charged by the Belgian prosecutor — including
one of Huawei’s most senior executives in Europe — with active corruption, money
laundering and criminal organization, after a series of police raids of premises
in Belgium, France and Portugal.
Huawei is listed as a member of 22 associations in the European Union’s
transparency register, which tracks corporate lobbying activities. Several of
these, like DigitalEurope, BusinessEurope and the European Internet Forum, have
already moved to suspend the Chinese company in response to the bribery scandal.
Several other organizations told POLITICO at the end of March that they were
“closely monitoring the situation.” Some took measures to distance themselves in
the past weeks.
At least eight people have been charged by the Belgian prosecutor with active
corruption, money laundering and criminal organization, after a series of police
raids of premises in Belgium, France and Portugal. | Frederick Florin/AFP via
Getty Images
At SolarPower Europe, Huawei representatives still hold key roles but the
organization has scaled back the company’s “non-membership financial
commitments,” a spokesperson for the association previously confirmed.
SolarPower Europe did not immediately respond to POLITICO’s request for an
update on its work with Huawei.
Think tank CERRE, which has Huawei as a member, previously said it had the
situation “under close review.” It declined to comment for this article.
The European Cyber Security Organisation (ECSO), where Huawei is still listed as
a member, is reviewing the company’s status with results expected on April 29,
it said in a comment.
Other organizations that list Huawei as a member, including Eurelectric, the
European Association for Storage of Energy, Bruegel, FTTH and ECTA, did not
immediately respond to a request for comment or an update on previous statements
about their work with the Chinese tech firm.
Huawei did not immediately respond to a request for comment. It said in a
previous statement: “The company maintains a zero-tolerance stance against
corruption. As always, we are fully committed to complying with all applicable
laws and regulations.”
This article has been updated to include a response from ECSO.
BRUSSELS — One of Huawei’s most senior executives in Europe is a suspect in the
Belgian investigation into alleged corruption at the European Parliament
benefitting the Chinese technology company, POLITICO can reveal.
The senior executive was represented in a Belgian court on Tuesday, documents
relating to the hearing showed.
He is charged with “active corruption of a person holding a public office,
criminal organization and money laundering,” said one of the documents, which
were disclosed as part of the preparation of a hearing at Brussels’ Chamber of
Accusation.
The senior executive is listed as a vice president for the Europe region at
Huawei and previously held a position as chief representative to the European
Union leading the firm’s public affairs office in Brussels. He can only be
identified as Yong J.
Tuesday’s hearing, held behind closed doors, was part of proceedings where
defense teams engage with senior judges to discuss procedural matters, including
potential custody decisions.
The senior executive could not be reached for comment and his lawyers did not
immediately respond to a request for comment. A Huawei spokesperson also did not
immediately respond to a request for comment.
The charges followed a series of police raids of premises in Belgium and
Portugal, including Huawei’s Brussels lobbying headquarters and several European
Parliament offices. | Frederick Florin/AFP via Getty Images
Belgian investigators are probing whether illegal payments were made to secure
political backing for an open letter supporting the Chinese company’s interests
and signed off by eight members of the European Parliament, according to an
arrest warrant seen by POLITICO.
The Belgian prosecutor said Friday it had charged eight people. The charges
followed a series of police raids of premises in Belgium and Portugal, including
Huawei’s Brussels lobbying headquarters and several European Parliament offices.
Aside from Yong J., three other Huawei employees were among the suspects in the
corruption probe who first faced Belgian judges last week as part of procedural
hearings, including a lobbyist and a senior executive for the firm, who can only
be described as Valerio O. and Han W. They are also facing charges related to
corruption, money laundering and participation in a criminal organization.
All suspects are presumed innocent.
Huawei fired two employees and suspended a third for their alleged involvement
in the bribery investigation, a spokesperson said Monday. The spokesperson did
not disclose the identities or roles of the employees affected. It is unclear
whether the employees fired and suspended by Huawei are the same as the Huawei
officials who were preliminarily charged.
Huawei said in a previous statement: “The company maintains a zero-tolerance
stance against corruption. As always, we are fully committed to complying with
all applicable laws and regulations.”
Mathieu Pollet contributed reporting.
BRUSSELS — Huawei has fired two employees and suspended a third for their
alleged involvement in a bribery investigation surrounding the Chinese
technology giant and the European Parliament, POLITICO has learned.
The firm “terminated the employment of two individuals” from April 1 and
suspended a third from April 2, a spokesperson for Huawei said in a statement.
“We take the ongoing investigation seriously,” the spokesperson added.
The spokesperson did not disclose the identities or roles of the employees
affected by the measures.
A lobbyist, a senior executive and a procurement manager with Huawei were among
the suspects in the corruption probe who first faced Belgian judges last week as
part of procedural hearings. The officials were preliminary charged with
corruption, participation in a criminal organization and money laundering. They
are presumed innocent.
It is unclear if the three employees fired and suspended by Huawei are the same
as the Huawei officials who were preliminary charged.
“The company maintains a zero-tolerance stance against corruption. As always, we
are fully committed to complying with all applicable laws and regulations,” the
Huawei spokesperson said.
The Belgian prosecutor said Friday it charged eight people in total, three weeks
after police raided addresses in Belgium and Portugal, including Huawei’s
Brussels lobbying office.
Investigators are probing whether illegal payments were made to secure political
backing for an open letter supporting the Chinese company’s interest and signed
off by eight members of the European Parliament.
Out of the eight suspects, three are now under electronic surveillance, two were
released “under conditions,” and three remain in prison, according to the
statement from the prosecutor.
BRUSSELS — Three Huawei employees and a managing director from Brussels
conference organizer Forum Europe appeared in court this week for hearings
related to the corruption investigation into the Chinese tech giant’s lobbying
in Europe.
Police raided more than 20 locations in Belgium and Portugal last month within
an investigation into alleged illegal payments made by Huawei to secure an open
letter signed by eight European lawmakers in support of the company’s interests,
according to the Belgian prosecutor and an arrest warrant seen by POLITICO. Five
people were charged as part of the investigation, prosecutors said on March 18.
In the first session, the parties met for a 15 minutes behind closed doors at
Brussels’ Chamber of Accusation, an appeals court where defense teams discuss
ongoing investigations with senior Belgian judges regarding procedural decisions
such as whether individuals should be released from custody. A second session,
on Wednesday, lasted for more than two hours.
According to a court timetable available on site at the Brussels Palace of
Justice, the suspects include a lobbyist from Huawei as well as a senior
executive and a procurement manager of the Chinese tech firm. The higher profile
Huawei employees can be named as Han W. and Valerio O.
All are suspected of corruption, participation in a criminal organization and
money laundering. They are presumed innocent.
Two other defendants are contractors, including one from Forum Europe who is
charged with “active corruption of a person holding a public office in an
organization governed by public international law,” according to the timetable.
Forum Europe said in an email: “We do not have any comment at this time.”
The arrest warrant, which POLITICO reported on last week, included details from
Belgian prosecutors alleging the key suspects may have facilitated the payments
for the pro-Huawei letter. “A sum of €15,000 was offered to the writer of the 5G
letter, while each co-signatory was offered €1,500,” read the warrant, signed by
the investigative judge.
“This transaction or proposed transaction is said to have been endorsed by
HUAWEI’s Chinese executives, in particular by …. [the] director of the Brussels
office,” it also said.
The warrant also described how the former adviser allegedly arranged for the
payments via invoices that investigators suspect might be for “alleged
consultancy services and campaign expenses, in the amounts of €18,450 and
€27,500.”
Huawei said in an earlier statement that it “takes these allegations seriously”
and “has a zero tolerance policy towards corruption or other wrongdoing.”
The Chinese Embassy in Belgium told POLITICO in a statement that “the Chinese
side is in communication with relevant authorities of the Belgian government”
and that the “Chinese government always requires Chinese companies [to] strictly
observe laws and regulations of the host countries.”
Two other people — one former and one current parliamentary assistant to
conservative Italian lawmaker Fulvio Martusciello — were arrested in France and
Italy as part of the probe, bringing the total number of suspects to at least
seven. They both denied any involvement and accepted being extradited.
Police authorities searched two offices belonging to several European Parliament
political assistants in Strasbourg, two officials with knowledge of the matter
told POLITICO.
Police had previously sealed the offices on March 13, the same day that
authorities raided more than 20 addresses in Belgium and Portugal as part of an
investigation into corruption at the Parliament allegedly benefiting Huawei.
Those offices have now been searched, the officials confirmed Thursday.
One of the officials confirmed the search in Strasbourg was part of the
investigation into Huawei’s lobbying practices.
Parliament members and their assistants have offices at the institution’s
premises in Brussels, where regular parliamentary activity takes place, as well
as at the institution’s official seat in Strasbourg, France, where it holds its
plenary sessions.
Two offices in Brussels were already sealed and searched earlier this month and
were handed back to their tenants.
Belgian prosecutors are investigating whether Huawei made illegal payments to
get an open letter written, signed by eight European parliamentarians, which
defended the Chinese tech giant’s interests, according to judicial documents
seen by POLITICO.
Four people have been charged with corruption and criminal organization and one
with money laundering, the Belgian prosecutor’s office said.
One parliamentary assistant to Italian center-right MEP Fulvio Martusciello was
arrested in Italy on March 20. The assistant in question has been suspended from
employment by the Parliament, according to the institution’s press services.
Martusciello’s office in 2021 led the effort to promote the letter that is under
investigation.
A spokesperson for Huawei said in a previous statement that the company “has a
zero tolerance policy towards corruption or other wrongdoing, and we are
committed to complying with all applicable laws and regulations at all times.”
BRUSSELS — Belgian prosecutors are investigating whether Huawei made illegal
payments to get an open letter written, signed by eight European
parliamentarians, which defended the Chinese tech giant’s interests, according
to judicial documents seen by POLITICO.
Belgian authorities this month raided 21 homes as part of a spiraling probe into
“active corruption in the European Parliament” that “benefitted Huawei.”
Investigators are looking into “excessive gifts” or “remuneration for taking
political positions” that took place “from 2021 to the present day,” the
prosecutors said.
In a second major test of accountability for the European Parliament after the
Qatargate scandal of 2022, four people have been charged with corruption and
criminal organization and one with money laundering, the Belgian prosecutor’s
office said last week.
According to an arrest warrant seen by POLITICO, first reported on by Italian
daily La Repubblica, a key part of the investigation hinges on a letter sent by
eight MEPs in February 2021 to three EU commissioners, in which they argue
geopolitical tensions should not hinder the development of 5G equipment in
Europe.
That letter, although it does not mention Huawei by name, is seen as promoting
the Chinese company’s interests because it came as several EU governments were
rolling out measures that sought to limit telecom operators’ use of Chinese
equipment, arguing Beijing posed risks because of espionage, surveillance and
potential economic dependency.
Conservative Italian lawmaker Fulvio Martusciello, one of the signatories,
posted the pro-Huawei letter on X on Feb. 15, 2021, but later deleted it. His
former parliamentary adviser and his assistant have now both been arrested in
relation to the Huawei probe, according to their lawyers. The assistant’s
contract has now been suspended.
CASH FOR A LETTER
The arrest warrant for Martusciello’s assistant includes details from the
Belgian prosecutors laying out the heart of the case, in which both she and his
former adviser are alleged to have helped arrange payments for the letter,
referred to as the “5G” letter in the judicial documents.
The description of the Belgian probe, as provided by the investigative judge in
charge of the case, says: “A sum of €15,000 was offered to the writer of the 5G
letter, while each co-signatory was offered €1,500.”
“This transaction or proposed transaction is said to have been endorsed by
HUAWEI’s Chinese executives, in particular by …. [the] director of the Brussels
office,” the document also reads. The director can only be identified as Abraham
L.
Moving on to bank details of what it describes as “suspicious payments,” the
document sets out how the former adviser allegedly arranged for the payments via
invoices “in consideration of alleged consultancy services and campaign
expenses, in the amounts of €18,450 and €27,500.”
“Assuming the facts are established, these amounts would represent the alleged
compensation for the above-mentioned letter drafted by eight MEPs for the
attention of three European Commissioners in favor of HUAWEI,” the document
continues. “The investigation has brought to light the financial circuit of
remunerations which would demonstrate the corruptive process.”
As part of a series of bank transfers, the former adviser wired €6,700 to
Martusciello, €1,000 to his assistant, and €14,800 to another parliamentary
assistant, the warrant says. Several account holders that received
payments remain unknown.
Conservative Italian lawmaker Fulvio Martusciello, one of the signatories,
posted the pro-Huawei letter on X on Feb. 15, 2021, but later deleted it. |
Frederick Florin/AFP via Getty Images
When contacted by POLITICO, Belgian prosecutors declined to comment on an
ongoing investigation.
Martusciello did not respond to requests for comment about the bank transfers.
Asked about Abraham L.’s alleged involvement in a bribery scheme, Huawei did not
respond to a request for comment. A company spokesperson said in an earlier
statement: “Huawei takes these allegations seriously and will urgently
communicate with the investigation to further understand the situation. Huawei
has a zero tolerance policy towards corruption or other wrongdoing, and we are
committed to complying with all applicable laws and regulations at all times.”
ARRESTS AND ALLEGATIONS
Martusciello’s current assistant was arrested in Italy last week as part of the
Huawei probe.
She “was not involved in the political activities of Mr Martusciello, she only
dealt with logistics,” her lawyer Antimo Giaccio told POLITICO, adding she “was
very rarely at the European Parliament … about 10 times.” Before an Italian
judge on Tuesday, she rejected all the preliminary charges against her but said
she stood ready to answer “any questions from the Belgian authorities,” her
lawyer added.
The former parliamentary adviser for Martusciello, who worked for him between
2015 and 2019, was also arrested in Paris last Thursday as part of the Huawei
probe, his lawyer Benoît Martinez told POLITICO. “My client intends to fully
cooperate with the Belgian authorities. He denies any involvement with the
charges he’s suspected of,” he added. He declined to comment further on the
charges related to his client.
The Belgian secret services, which filed a declassified report that triggered
the investigation, found digital evidence that the former adviser could have
been involved in the drafting of the 2021 letter with one of Huawei’s lobbyists,
who can only be identified as Valerio O., the arrest warrant says.
Valerio O.’s lawyer Denis Bosquet declined to comment.
The investigators say the transfers can also “be linked to the drafting by MEP
Fulvio Martusciello of legislative amendments favorable to Huawei,” and to a
communication in which Valerio O. tells an employee of Huawei in Poland “that
they [Huawei] ‘often cross the line and even pay for amendments.'”
The same month as promoting the letter, February 2021, Martusciello submitted
amendments to a European parliamentary report that would favor Huawei’s position
in Europe.
Martusciello did not reply to multiple requests for comment about the letter,
but told POLITICO he didn’t know the charges against his assistant. He told
Belgian newspaper Le Soir that he had never received anything from Huawei. “I’ve
never been to China, I’ve never been to the stadium, I’ve never received a cell
phone or any other gift,” he said.
NGO Transparency International received an anonymous tip in connection to the
2021 letter and forwarded the tip to the EU’s OLAF anti-fraud office, it said.
The then-director of the civil rights group Michiel van Hulten this month posted
on Bluesky that OLAF had dismissed the claims because of “insufficient
suspicions” of wrongdoing. A spokesperson for OLAF confirmed it did not
investigate the matter.
KEEPING A DISTANCE
It remains unclear whether any of the co-signatories of the 2021 letter are
being investigated by Belgian authorities as part of the Huawei corruption
probe, but several of those current and former members of the European
Parliament are now taking pains to distance themselves from it.
POLITICO asked all of them about their involvement. Those who responded said
they had not been contacted by authorities with regard to the letter.
The same month as promoting the letter, February 2021, Martusciello submitted
amendments to a European parliamentary report that would favor Huawei’s position
in Europe. | Kevin Frayer/Getty Images
Italian conservative lawmaker Herbert Dorfmann insisted the text was
Martusciello’s idea and said he would not have signed the letter had he known it
was related to the Chinese firm. “I have always been politically in favor of
keeping Huawei out of the European market,” he told POLITICO. He added neither
he nor his team were offered money “or any other form of compensation in
exchange for [his] signature.”
Former MEP Cristian-Silviu Bușoi, a Romanian conservative, stated he never
consented to signing. “I looked through my official email and found no
correspondence regarding this letter,” he said in a written statement. “I also
do not recall giving verbal consent to Mr Martusciello, as is sometimes
customary when colleagues seek support for their initiatives,” he also said,
adding that neither he or his staff received any compensation nor were aware of
any scheme related to the signature of the letter.
Aldo Patriciello, a far-right Italian MEP, said in an email: “I honestly
struggle to remember whether the request for my signature came via email, phone
call or WhatsApp.” He added that he had no direct or indirect relationship with
Huawei or its lobbyists.
Romanian conservative Daniel Buda, also a signatory, attributed his involvement
to his team, stating he was informed through a briefing prepared by his office
staff. “My support was solely driven by concerns about rural digital
infrastructure, not influenced by external parties,” he said in an email. He
added he had not been contacted by any investigative authority regarding the
letter and that neither he or his team received any money in exchange for his
signature. “I had no knowledge — neither then nor now — that behind this letter
or activity there could be such a scheme,” he told POLITICO in a written
statement.
Former Italian social-democrat member Giuseppe Ferrandino said: “I am certain I
never signed any letters of such kind” and added he had never been contacted by
any authorities regarding this topic. “Nobody ever offered me money to influence
my parliamentary activity,” he added.
Other signatories included hard-right Italian lawmaker Giuseppe Milazzo and
former Romanian social-democrat member Tudor Ciuhodaru, neither of whom
responded to POLITICO’s requests for comment. Milazzo told Italian news agency
ANSA that he had never had meetings related to the investigation into the Huawei
case: “I have never been offered and I have never accepted any money, gifts or
any kind of favor, directly or indirectly, from [Huawei],” he said.
According to conversations with three former Huawei officials, the 2021 letter
posted by Martusciello was meant to counter another open letter from October
2020 in which over 40 lawmakers urged the European Commission to impose stricter
controls over the use of Chinese equipment in Europe.
In a letter to European Parliament President Roberta Metsola on Wednesday, 28
members of the chamber urged the institution to “temporarily set aside any MEPs,
credibly suspected of involvement, from any parliamentary activity relating to
Chinese interests.”
Aitor Hernández-Morales and Paula Andrés Richart contributed reporting.
BRUSSELS — The European Union’s lobbying scene is rushing to review its ties
with Chinese tech company Huawei in the wake of a corruption scandal.
European technology association DigitalEurope on Thursday suspended Huawei from
its work after Belgian prosecutors last week launched an investigation into
“active corruption” at the European Parliament benefitting the Chinese tech
giant. The powerful industry group BusinessEurope also removed Huawei from its
list of partner companies.
Other EU lobby groups and think tanks that have Huawei as a member or received
contributions from the company are considering steps too, they told POLITICO.
The European Parliament and European Commission already blacklisted Huawei
lobbyists last week, shutting off their access to EU premises, and commissioner
cabinets and officials working at the EU executive’s directorates general were
instructed “to immediately suspend contacts and meetings” with Huawei “until
further notice.”
It’s a sign of how Huawei — which is among the top spenders of lobbying money in
Brussels according to the EU’s transparency register — is suffering major blows
after Belgian police raided its main lobbying office in Brussels as part of
a larger investigation into corruption, criminal organization and money
laundering at the European Parliament.
DigitalEurope is one of Brussels’ most powerful technology lobbying voices. It
gathers tech companies and national industry associations to influence European
Union decision making.
The lobby group said in a statement it was aware of the “serious allegations”
against Huawei. “We take ethical business conduct and compliance with the law
very seriously. As a precautionary measure, Huawei’s membership has been
suspended until further notice,” the statement read.
BusinessEurope is a lobbying heavyweight in Brussels, with a membership composed
of national trade associations and representing the interests of industrial
heavyweights across all sectors. It has a group of “partner companies” that
includes the world’s largest companies. The Internet Archive search tool
showed Huawei was still listed as a partner on March 1 but had been removed by
March 18, days after the corruption scandal broke.
Huawei is also a member of, or has contributed to, several other lobby groups,
trade associations and think tanks, according to the EU’s transparency register
that lists declarations from organizations looking to lobby the EU’s work.
Those groups and associations are now all closely monitoring how the case
unfolds or gearing up to take action.
The European Internet Forum, a non-profit led by European Parliament members,
lists Huawei as a business member. Communications Manager Eusebiu Croitoru said
the organization has scheduled a discussion about the investigation and
“potential implications for Huawei’s membership,” which will take place April 9.
The financial and ethical committee of the European Cyber Security Organization
(ECSO) will “soon analyze the situation and possible next steps.”
Think tank Bruegel said it is “closely monitoring the situation.” And the Centre
on Regulation in Europe (CERRE) has kept the situation “under close review.”
Several of the lobby groups or think tanks contacted by POLITICO said Huawei’s
input to their organization or involvement in policy activities was small.
Huawei’s access to sensitive working groups at DigitalEurope was already limited
following the security concerns raised over the Chinese tech giant in past
years.
The company’s contribution to CERRE was “clearly below” 10 percent of the think
tank’s budget, it said.
Telecoms lobby group ECTA said that Huawei paid a discounted membership fee and
assessed the involvement of Huawei in its activities as “limited,” but added it
is “closely monitoring the situation.”
ECSO also said that Huawei had “limited rights” as an associate member.
Eurelectric said Huawei is a “business associate,” which means the company is
not involved in any policy work, but it added that it is following the reports
“closely.”
Elisa Braun and Mathieu Pollet contributed reporting.