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!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jim Duffy

Network World
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

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.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?