Huawei under investigation for EU corruption scandal

Huawei, one of China’s largest technology companies, is facing a major corruption probe in Europe as Belgian authorities intensify their investigation into the company’s lobbying efforts within the European Parliament. The extensive inquiry, dubbed ‘Operation Generation,’ has already led to several high-profile raids on Huawei’s offices and the residences of its key lobbyists in Brussels, Flanders, Wallonia, and Portugal. Law enforcement agencies suspect a range of illegal activities, including bribery, document forgery, money laundering, and the formation of a criminal network.

Reports from investigative journalism platform Follow the Money, in collaboration with Belgian media outlets Le Soir and Knack, suggest that approximately 15 individuals—comprising both former and current Members of the European Parliament (MEPs)—are now under investigation. The authorities believe Huawei lobbyists may have attempted to buy political influence through financial incentives and extravagant gifts.

Evidence of Bribery and Secret Transactions Emerge

While European Parliament premises have not been directly searched, authorities have reportedly uncovered compelling evidence indicating that Huawei representatives provided incentives such as luxury travel packages to China, expensive football match tickets, and even outright cash payments to select MEPs. Investigators suspect that these payments were discreetly funneled through a Portuguese business entity to avoid detection.

The Belgian Federal Prosecutor’s Office has confirmed that multiple individuals have been questioned in relation to the case, though no formal legal action has yet been taken against any sitting lawmakers. There has been no official request for the lifting of parliamentary immunity, but further developments may soon change this.

Despite the mounting allegations, Huawei has yet to issue an official response to the unfolding scandal, leaving many in the European tech and political spheres eager for clarification.

Huawei’s Controversial Involvement in Malta’s Surveillance Project

The fresh scrutiny surrounding Huawei has reignited discussions about its past projects, particularly in Malta, where the company was involved in the controversial Safe City project. The initiative, launched under the administration of former Maltese Prime Minister Joseph Muscat, was a collaboration between the Maltese government and Huawei, designed to introduce extensive surveillance technology across high-risk areas, such as entertainment district Paceville and migrant-heavy Marsa.

The project, while marketed as a public safety initiative, quickly attracted significant criticism from privacy advocates, including legal and cybersecurity experts. Among its most vocal opponents was Professor Joseph Cannataci, the former United Nations Special Rapporteur for Privacy, who cautioned that such large-scale monitoring systems could pose serious risks to civil liberties. Cannataci emphasized that the justification for such surveillance should be rooted in genuine national security threats, such as counterterrorism efforts, rather than broad crime prevention measures.

Despite these warnings, the Maltese government allocated €400,000 annually to fund the Safe City project. However, as public opposition mounted and concerns about privacy violations intensified, the project’s future became increasingly uncertain. The government later announced that it would dissolve the state-owned entity responsible for overseeing Safe City Malta, and officials confirmed that the contract with Huawei would not be renewed.

Shift from Facial Recognition to ‘Advanced Video Surveillance’

Originally, the Safe City initiative was promoted as a cutting-edge security solution featuring facial recognition technology. However, due to the backlash over privacy infringement, the project was later modified. According to Joseph Cuschieri, the former director of Safe City Malta and previously the CEO of the Malta Financial Services Authority (MFSA), the system was adjusted to incorporate ‘Advanced Video Surveillance’ (AVS) instead.

Unlike facial recognition, AVS does not rely on direct identification of individuals. Instead, it employs artificial intelligence to monitor for suspicious behavior, flagging unusual activity for law enforcement review. While AVS was presented as a compromise to address privacy concerns, critics remained skeptical about the potential for abuse and the effectiveness of regulatory oversight.

Following the termination of the Safe City project, Cuschieri moved on to become the CEO of Project Green under Minister Miriam Dalli. His appointment sparked further controversy given his past association with regulatory failures during his tenure at the MFSA.

Growing Geopolitical Concerns Over Chinese Tech Companies

Huawei’s involvement in surveillance technology projects like Safe City Malta has fueled broader concerns about the risks associated with Chinese technology firms operating in foreign markets. Huawei, along with other Chinese companies such as ZTE and CloudWalk Technology, has been accused of enabling authoritarian regimes to expand their surveillance capabilities.

For instance, ZTE reportedly provided the Ethiopian government with advanced communications monitoring tools, allowing authorities to suppress political dissent. In Zimbabwe, CloudWalk Technology collaborated with the government to implement a large-scale facial recognition program, raising fears that such systems could be used to track and control political opponents.

These incidents, combined with growing unease about China’s domestic use of surveillance technologies—including its controversial social credit system—have prompted many Western nations to reconsider their reliance on Chinese tech firms for critical infrastructure.

The Impact of the Belgian Corruption Probe on Huawei’s Future in Europe

The corruption probe in Belgium has placed Huawei’s lobbying efforts under intense scrutiny and may lead to wider regulatory actions across the European Union. As concerns grow over foreign interference in the EU’s legislative process, authorities are likely to tighten regulations on lobbying and corporate influence.

Several European nations have already taken steps to limit Huawei’s influence. The United Kingdom has effectively banned Huawei from participating in its 5G network rollout, citing national security concerns. France and Germany have also imposed restrictions on the company’s involvement in their telecommunications infrastructure.

The outcome of the Belgian investigation could have significant ramifications for Huawei’s business operations across Europe. If the allegations are substantiated, the company may face increased scrutiny, potential financial penalties, and even further restrictions on its ability to operate within the EU market.

As legal proceedings unfold, policymakers, tech experts, and privacy advocates will closely monitor the case to assess its implications for both corporate governance and national security within the European Union.

Conclusion

The corruption probe into Huawei’s lobbying efforts in the European Parliament highlights growing concerns about corporate influence and ethical governance within EU institutions. As Belgian authorities continue their investigation, the potential ramifications for Huawei could be significant, both in terms of legal consequences and its ability to operate within Europe.

Simultaneously, the revived debate over Huawei’s role in Malta’s Safe City project underscores the broader implications of allowing Chinese technology firms to handle sensitive data and infrastructure. With increasing scrutiny from Western governments, Huawei faces mounting challenges in regaining trust and maintaining its foothold in international markets.

As developments unfold, the case will likely serve as a critical test for EU regulatory frameworks governing lobbying, technology partnerships, and national security protections. The outcome could shape future policies on corporate influence, privacy rights, and the role of foreign tech firms in Europe’s digital landscape.

FAQs

What are the allegations against Huawei in Belgium?
Belgian authorities suspect Huawei of bribery, money laundering, and lobbying misconduct aimed at influencing European lawmakers.

Who is involved in the Huawei corruption probe?
Around 15 former and current MEPs are under investigation for allegedly accepting illicit payments from Huawei lobbyists.

What kind of bribes did Huawei allegedly provide?
Huawei is accused of offering cash payments, luxury travel, and high-profile event tickets to politicians in exchange for political support.

Has Huawei responded to the investigation?
Huawei has not yet issued an official statement regarding the allegations or the ongoing legal proceedings in Belgium.

What was Huawei’s involvement in Malta’s Safe City project?
Huawei collaborated with the Maltese government to develop a surveillance project, which was later scrapped amid privacy concerns.

Why was Malta’s Safe City project controversial?
The initiative was criticized for its use of facial recognition technology, raising concerns over mass surveillance and civil liberties.

How has Huawei’s global reputation been affected?
Huawei has faced increasing scrutiny worldwide, with multiple countries restricting its involvement in telecommunications infrastructure.

What security concerns exist regarding Chinese tech firms?
Western governments worry that Chinese firms like Huawei and ZTE may facilitate state surveillance and pose national security risks.

How does Advanced Video Surveillance (AVS) work?
AVS monitors for suspicious activity and alerts authorities without identifying individuals, distinguishing it from facial recognition technology.

What are the potential consequences of the Belgian probe?
If proven, the allegations could lead to stricter EU regulations on lobbying, financial penalties for Huawei, and further market restrictions.