After Australia, the Chinese telecom equipment and solution vendors Huawei and ZTE are now facing trouble in Algeria. The Chinese telcom giants have been banned from participating in bids for state contracts in Algeria for two years, according to reports.

They have also been fined been fined DZD3 million (US$38,400 each by a local court after being found guilty of bribing executives at the state owned telecoms network, Algerie Telecom.

The court has found Mohamed Boukhari, a former executive at the telecoms network, Chami Madjdoub, and a businessman guilty of receiving illegal payments and money laundering to conceal the sources of those payments.

The alleged bribery took place between 2003 and 2006 and the two men were sentenced to 18 years in prison, have had their property confiscated and been fined DZD 5 million (US$64,000) each.

Three Chinese officials, Dong Tao, Chen Zhibo and Xiao Chuhfa have been sentenced to 10 years in prison with an international arrest warrant issued for their extradition back to the country.

The two companies have denied the allegations saying that they are also victims in the case.