Category Archives: Analysis

Procurement of Pressure Transducer via Ebay From China

Alpha has spent a great deal of time working with manufacturers and exporters of proliferation-sensitive goods in order to reduce the risks that their products will reach programmes of concern. This work is important – for example, see the recent case study involving MKS instruments. However, it is not only goods that are shipped from a factory that present proliferation risks: goods sold via distributors and second hand items can also. Continue reading Procurement of Pressure Transducer via Ebay From China

Li Fang Wei and LIMMT

Li Fang Wei and LIMMT

In 2009, Li Fang Wei and his Dalian (China) based LIMMT trading company were indicted by a court in New York (USA) on 118 counts of falsifying business records in order to use US financial institutions to receive payments for proliferation-sensitive goods transferred to Iran and other locations. This procurement case study seeks to provide industry with a concise example of the forms that illicit procurement can take. Continue reading Li Fang Wei and LIMMT

Illicit Procurement of a Fluid Control Product

Illicit Procurement of a Fluid Control Product

Key Points

·         The robustness of the export compliance systems of distributors is key to preventing proliferation. The lack of awareness held by the stockist about export licensing requirements was shocking; it was Company C’s reputation at risk too.

·         Buyers may pursue products with a lower technical specification if it might mean that they can avoid the control list. Companies should be fully aware of their products potential uses and full end-user checks should be carried out to mitigate this risk.

Continue reading Illicit Procurement of a Fluid Control Product

The Toshiba-Kongsberg Case

During the cold war, the Soviet Union engaged in a highly organised and sustained effort to procure sensitive technologies from abroad to advance its conventional military programmes. This procurement case study seeks to draw lessons from the Toshiba-Kongsberg case to highlight the financial and reputational risks posed to companies by their subsidiaries and business partners if adequate compliance systems are not in place; it also seeks to draw attention to the potential consequences for broader international security of illicit transfers. Continue reading The Toshiba-Kongsberg Case