Nuctech Company has been criticized for its practices and mentioned in a number of media reports in relation to controversies.
Data security The company's ties to the Chinese Communist Party and CNNC have raised concerns from some countries about data security, including Canada and Lithuania. In 2020, customs authorities in Finland stated that they found no security grounds to reject a bid by Nuctech. In 2022, several
members of the European Parliament issued a letter challenging a tender to award Nuctech for scanners in the
Strasbourg Airport due to security concerns.
Procurement investigation in the Philippines In 2006, the Philippine government bought 30 units of mobile X-ray equipment through a loan agreement with the Chinese government for a total value of P7.953 billion. In 2016, it was reported that the
Commission on Audit of the Philippines (COA) found that the contract had been "exorbitantly overpriced," that a much lower quotation existed from another supplier, and that maintenance costs were higher for Nuctech products. COA auditors clarified that the price inquiry was made despite the difficulty in providing an accurate unit price and full specifications of Nuctech's machines. The COA asked the
Bureau of Customs to review the original contract and evaluate the deal. In June 2010, the EU imposed a five-year tariff on Nuctech products for alleged dumping on the European market. The anti-dumping measures expired in the absence of an extension request. In response to the ruling, the company shifted production to a factory outside Warsaw, Poland. Namibian prosecutors charged the three with joining in a bribery scheme that secured a $55.3 million contract in May 2008 to install Nuctech scanners at customs inspection points across Namibia. Other sources report the contract to be worth $69 million. General
Martin Shalli was subsequently suspended by Namibian president
Hifikepunye Pohamba for allegedly receiving millions of Namibian dollars from Nuctech.
Bribery scandal in Taiwan In February 2020,
Taipei Times reported Taiwan's former head of the Aviation Police Bureau's aviation security section was found guilty on corruption charges in relation to a procurement project involving Nuctech.
Canadian embassies contract rejected In July 2020, Canada's foreign affairs minister stated that he would review contracts awarded by the
Canada Border Services Agency in light of Nuctech's connections to the Chinese Communist Party. In September 2020,
Global News reported that the
Canadian International Trade Tribunal was reviewing the procurement of the contract.
Quality and procurement concerns in Malaysia According to a July 2020 report by
Malaysiakini, the
National Audit Department and the
Royal Malaysian Customs Department have both cited quality and procurement concerns with Nuctech products.
U.S. ban and sanctions In 2014, the
Transportation Security Administration banned Nuctech equipment from U.S. airports due to security concerns. In December 2020, the
United States Department of Commerce added Nuctech to the
Bureau of Industry and Security's
Entity List. ==References==