By John Q. Hosedrinker 
Following a report revealing that Maxar Technologies received high-resolution satellite imagery orders for Pahalgam, Pakistan, Maxar removed Business Systems International (BSI) from its partner list. Although Maxar denies BSI placed the Pahalgam orders, the timing of the removal—shortly after the report’s publication—is noteworthy. BSI’s owner, Obaidullah Syed, has a criminal record involving illegal exports to Pakistan. Maxar has yet to address concerns regarding BSI’s initial onboarding and the lack of background checks.
Read the original article here
The removal of Business System International (BSI), a controversial Pakistani firm, from the partner list of a US satellite company’s website highlights the complexities of international business relationships and the potential for unwitting involvement in illicit activities. This action, taken by the unnamed US satellite company (presumably Maxar Technologies, given the context of online discussions), underscores the critical importance of thorough due diligence in evaluating potential partners, especially in geopolitically sensitive areas.
The situation revolves around Obaidullah Syed, the 67-year-old owner of both the Pakistan-based BSI and its US counterpart, BSI USA. Syed’s past involvement is central to understanding the current controversy. He pleaded guilty to violating the International Emergency Economic Powers Act, admitting to a conspiracy between 2006 and 2015 to export computer equipment from the US to the Pakistan Atomic Energy Commission (PAEC) without proper authorization. This past conviction casts a significant shadow over BSI’s dealings and raises serious questions about the company’s ethical practices and adherence to international regulations.
Adding fuel to the fire is BSI’s acquisition of high-definition satellite imagery from the US satellite company. Specifically, purchases of images encompassing Pahalgam, a region in India, raised eyebrows, especially considering the timing: several acquisitions occurred within the ten days leading up to a terrorist attack in the area. This proximity in time, coupled with Syed’s past actions, has prompted speculation about the potential misuse of the imagery for malicious purposes. The lack of transparency surrounding these transactions further fuels public concern.
The US satellite company’s decision to remove BSI from its partner list, without a formal explanation, serves as a reactive measure seemingly aimed at distancing itself from the controversy. This swift action, while understandable given the negative publicity and potential legal ramifications, also raises questions about the initial vetting process. It suggests a possible failure in the company’s internal due diligence procedures, which should include thorough background checks of potential partners to assess their reputation, compliance history, and potential links to illegal or harmful activities. The lack of initial due diligence is a critical lapse that needs to be addressed not only by this company, but by all firms operating internationally.
The controversy extends beyond the actions of BSI and the US satellite company. The discussions surrounding this event reveal deeper anxieties regarding Pakistan’s alleged support of terrorism and the potential for international collaborations to be exploited for nefarious purposes. The comments highlight a widely-held perception that Pakistan harbors elements actively involved in terrorism, and that the line between legitimate business operations and support of such elements is often blurred. This perception, regardless of its accuracy, presents a significant risk to international businesses interacting with entities in Pakistan, necessitating stringent caution and heightened vigilance in risk assessment.
The removal of BSI, while seemingly a simple corporate decision, serves as a cautionary tale illustrating the risks of inadequate due diligence and the potential for unintended involvement in highly sensitive geopolitical situations. It underscores the need for transparency, robust background checks, and a proactive approach to risk management in international business partnerships. The absence of detailed explanations from the US satellite company regarding its decision further amplifies calls for greater accountability and a more transparent decision-making process in situations with such potentially far-reaching consequences. The story highlights the intricacies of navigating international commerce amidst geopolitical tensions and underscores the need for continuous vigilance and stringent ethical considerations in business dealings across borders. Ultimately, the event raises important questions about corporate responsibility and the need for proactive measures to mitigate potential involvement in illegal or harmful activities.