NZ, other Five Eyes partners met before Huawei arrest

Spy bosses from countries in the Five Eyes network held a secret meeting in Nova Scotia in July to discuss concerns about security concerns about China and Huawei, according to an AFR report.

Telcos' pending upgrades to 5G mobile networks were apparently a topic of particular concern as the agency heads supped on lobster bisque.

In the months that followed that July 17 dinner, an unprecedented campaign has been waged by those present – Australia, the US, Canada, New Zealand and the UK – to block Chinese tech giant Huawei from supplying equipment for their next-generation wireless networks, the paper says.

While security agencies have been wary about publicly discussing Huawei, international security expert Paul Buchanan says it's noticeable that earlier this year, the alliance was fractured, with the US and Australia taking a hard line on Huawei, banning it from mobile networks, fibre rollouts and international cable projects, while the UK, Canada and New Zealand where happy to allow business (or in NZ's case, even encourage it) with the Chinese company.

Now, "All of the Five Eyes partners are coming into line", Buchanan says.

The GCSB blocked a Spark proposal to use Huawei gear in its 5G upgrade in a decision made public on November 28. "Significant national security risks", were cited by the GCSB, but not detailed.

British Telecom said on December 5 that it would not use Huawei for core elements of its 5G upgrade and, more strikingly, confirmed an FT report that it would strip Huawei gear from its 4G and 3G networks on security agency advice. (Here, GCSB Andrew Little told the Herald it was his understanding the Huawei security issue was restricted to 5G.)

The same day Canadian authorities arrested Huawei CFO Meng Wanzhou in Vancouver at the behest of the US. Meng was granted bail earlier this week.

Meng is charged with sanctions-busting rather than espionage, but accusations persist of Huawei co-operating with the Chinese Government on illicit surveillance.

"I believe the US intelligence community consensus that Huawei works hand in glove with Chinese Intelligence," says Buchanan, who worked as a policy analyst for the US Secretary of Defence and an adviser to the Pentagon before coming to New Zealand to work as a university lecturer. He now runs a consultancy.

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12176792

ANZ executive quits after probe into wine and chauffeur expenses

The chief executive of ANZ Bank’s New Zealand division has stepped down following concerns raised by the board over his claiming a chauffeur-driven car and wine storage as business expenses.

The departure of David Hisco, a 30-year veteran at the Australian bank, follows a review of executive expenses ordered by Shayne Elliott, ANZ Group chief executive, in the wake of a high-profile public inquiry into misconduct in the Australian financial industry.

The leadership change comes at a tricky time for ANZ, which is contending with a proposal from New Zealand’s central bank that would require banks in the country to hold significantly more capital — a move that could prompt a round of equity raisings.

https://www.ft.com/content/0efcfcba-9099-11e9-aea1-2b1d33ac3271