Cisco says it did not 'act inappropriately' in Brazil

Cisco says it did not "act inappropriately" after four of its employees were included in the 44 arrests made this week by federal authorities in Brazil as part of a tax-evasion investigation.

Cisco also said it does not import products directly into Brazil, but through resellers. The company said it is continuing to gather facts about the incident, in which Brazil's Policia Federal reportedly raided Cisco offices around the country and arrested senior level executive there.

"Right now, we are working hard to better understand the details of this situation," Cisco said. "Of the 44 warrants issued by the Brazilian authorities, based on the information we have only four were issued to Cisco employees. Our foremost concern and focus is with our four detained employees and their families, as well as for the welfare of all our hundreds of hard-working employees who live and work throughout Brazil and the hundreds of others who help support our customers."

Reuters reported that Cisco's Brazilian unit had imported US$500 million worth of telecommunications and network equipment over the last five years without properly paying import duties. In all, the company owes an estimated US$826.4 million in taxes, fines and interest, Reuters reported.

In addition to the four arrests in Brazil, authorities also asked U.S. police to issue arrest warrants for five more suspects in the United States, according to the Reuters report.

The AP reported that Brazilian authorities had been conducting the investigation for two years, and staged raids around the country involving 650 police and tax agents executing 93 search warrants.

Cisco said earlier this week that the investigation involved a group of Brazilian companies, at least one of which is a Cisco reseller. The company also confirmed that Brazilian authorities temporarily closed Cisco offices in Sao Paulo and Rio de Janeiro.

Brazil represents 1% of Cisco's overall business.

The company maintains it did nothing to trigger the sting.

"In the review of the facts that we've been able to undertake, we do not believe Cisco has acted inappropriately," the company states. "Key to our evaluation, we would note that Cisco does not import products directly into Brazil, but relies on resellers. We are fully cooperating with the authorities and are conducting a thorough internal review as well to understand these troubling allegations. The only appropriate response to a challenge such as this is to be open and transparent.

"Until the facts are known, it would be premature and irresponsible on our part to speculate about the situation."

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jim Duffy

Network World
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?