Chinese Govt. mum on N$120 million fraud
Written by Max Hamata and Wonder Guchu
Thursday, 16 July 2009 
Informanté  

The Chinese Embassy has declined to comment on the N$120million X-Ray equipment fraud involving Chinese manufacturer Nuctech Company, despite the fact that it is headed by Hu Haifeng, the 38-year old son of Chinese President Hu Jintao.

Hu Haifeng, who graduated from the National Tsinghua University in Beijing with a Master's degree in engineering physics joined the company that was formerly called Nuclear Technology Company as an assistant to the general manager.

He then rose through the ranks to become the vice-president and president of the company formed 12 years ago in partnership with the National Tsinghua University, which both him and his father attended.

Nuctech has not issued a statement since the arrest of its Namibian consultants at Teko, and its Marketing Director in Beijing, Wang Weidong, has not responded to questions from Informante on the company's involvement in the deal. 

The official spokesperson of the Chinese Embassy in Windhoek, who preferred to be named only as Mr. Yang told Informanté that the embassy was not prepared to say more than: "We will take the necessary steps." Mr. Yang also refused Informanté access to speak to Chinese Ambassador, Ren Xiaoping.

"We will take appropriate steps," was all what Mr. Yang was prepared to say, "adding that those were the instructions he has received from the Embassy.

Permanent Secretary of Finance Calle Schlettwein who on February 23, 2009 authorised the advance payment of more than N$120 million to Nuctech Company Limited, said he was not aware that the company was connected to the Chinese President.

President Hu Jintao and his son are both alumni of the National Tsinghua University. 

He would also not state who introduced Nuctech to the Ministry of Finance. Nuctech is affiliated to China's top secondary institution, Tsing Hua University whose initials are ‘'TH'' in THSCAN trademark. 

Nuctech is a supplier of X-ray inspection technology to more than 40 countries worldwide including Australia, Norway, Iran, Belgium, Denmark and South Korea, USA and Ireland.

In a deal with the US's Los Angeles port valued at US$1,7million, the Americans in February this year cancelled the deal saying Nuctech's equipment had failed US field tests.

Nuctech claims that it has elevated China to become the world's major inspection system suppliers alongside the USA and Germany.

In November 2006, Nuctech signed a contract with HM Revenue & Customs (HMRC) in the United Kingdom to supply container and vehicle inspection systems to British ports, the first deal between HMRC and a Chinese firm. Nuctech had export revenues of US$98.5 million in 2005.

In February, Nuctech's new X-ray scanners were installed in the Dublin port at a cost of €3 million (US$4 million) to assist with the inspection of containers and commercial vehicles. 

Australian customs also signed A$800million (US$628million) deal with Nuctech for the acquisition of X-ray scanners.

Unlike the Namibian deal, Americans were given the equipment for tests before making any payment.