Huawei CFO raises new argument to fight US extradition in Canada court

VANCOUVER/NEW YORK - Huawei Chief Financial Officer Meng Wanzhou is raising a new argument in a Canadian court in a bid to fight extradition to the United States on bank fraud charges, court documents released on Monday (June 15) showed.

Meng's lawyers claim the case that the United States submitted to Canada is "so replete with intentional and reckless error" that it violates her rights.

Meng, 48, was detained in Vancouver on Dec 1, 2018, at the request of the United States, where she is charged with bank fraud and accused of misleading HSBC Holdings Plc about Huawei Technologies Co Ltd's business in Iran.

Meng, the daughter of billionaire Huawei founder Ren Zhengfei, has said she is innocent and is fighting extradition.

The arrest has strained China's relations with both the United States and Canada.

A PowerPoint presentation that Meng gave to a HSBC banker in Hong Kong in 2013 has been cited as key evidence against her.

In that presentation, Meng said that Skycom Tech Co Ltd - a firm that operated in Iran - was "a business partner of Huawei," while the United States has described it as an unofficial subsidiary.

Meng's lawyers argued the prosecutors omitted key disclosures Meng made in the presentation regarding Huawei's ongoing business operations in Iran and that Skycom worked with Huawei in sales and service in Iran.

Without those disclosures, the lawyers said, the US summary of the PowerPoint was "materially misleading".

Meng's lawyers also pointed out that the case said only "junior" HSBC employees knew of the relationship between Huawei and Skycom. Meng's lawyers said it is implausible that HSBC senior management was unaware of the relationship, given Huawei was one of HSBC's biggest clients.

The lawyers also said that a US$900 million (S$1.25 billion) credit facility that the United States said HSBC had extended to Huawei did not exist.

Rather Huawei was in a US$1.6 billion credit arrangement with 26 banks, and HSBC's total contribution was limited to US$80 million, they argued.

In addition, the lawyers said, the credit facility was never drawn on by Huawei and was cancelled in June 2017.

Assistant Chief Justice Heather Holmes of British Columbia Supreme Court said in a case conference on Monday that she wanted to be fully apprised of the US case before turning to Meng's claims that her rights were violated when she was arrested.

A spokesman for US prosecutors declined to comment. HSBC did not respond immediately. A spokesman for Canadian Justice minister declined to comment as the case remains before the courts.

Last month, a Canadian judge allowed the extradition case to continue, rejecting defence arguments that the US charges against Meng do not constitute crimes in Canada.