McDonald's Project Dispute Between Hanwha And Integrator "Lock To" Deal

•Published Apr 11, 2023 12:15 PM

A Saudi Arabia integrator alleges Hanwha gave away a 2,000 camera deal it brought to Hanwha, despite Hanwha's country manager pledging it was "lock to" the integrator.

IPVM Image

In this post, IPVM examines this dispute in detail, including claims from the integrator, responses from Hanwha, the end user, and the winning bidder, and what this shows about relations between manufacturers and integrators in 2023.

*** *** ****, * ********'* *********, say *** ********** **** *** *** high ***** *** ******** **** ** was *** ***** ** ********* ** to ******. ****** **** *** ******** was *** ** *** ***** *** they **** ***** **** ***** ** the **********.

Claims "** **** *** *** *** ******** ******"

***** ********* *** ********* ******* ****** ********,** ********** ***** ********. ** ****, ***** ******'* ******* McDonald's ******** (****** ************* ******** *******)****** ** ****** *** *********** **** 2,000 ******* *** *** ****.

******* ******* ** **** **** "** were *** *** *** ******** ******" for *** "****** ****" ****, ************ beating *** ***** ********* *** ****** Honeywell **********:

IPVM Image

*** ***** **** **** **** ********* with ********'* *** ******* ** ******** an ***********.
We **** *** **** *** ******** ****** and McDonald's ******** ****** for their project after *** **** and PoC [proof of concept]
We *** ***** *****/***** **** ***** [********'*] ** **** who we helped even to compare other solutions & they can never deny that and hence we were actually the one "supposed to get the job" because others were quoting another brand. [emphasis added]

********'* ******** **** ********** **** ** Hanwha, ******* ****:

** ** **** ******* ******* ** previous ******** *** **** ***** ** VIVOTEK , ********* *** ****** ********. A ****** *********** *** ** ********** CCTV *********. *****, ** ********* *** the ******** *** **** ********* *** chose ****** ***** * ********* **********.

****** **** **** "**** *** *** first ******* *** *** *******". *** Hanwha's **** *********, *** *** *** of **** *******.

9.3% ******, **** ****

**** ******* ********'* *** ********* *** ~$648,500 (*** ********* **% ***) *** would **** **** * *.*% ****** upon ********* *** ****** ******* ******* its **********, *** ********'* ******** ************** ***** ******, ******* ****.

"This ******* ** **** ** ****"

******* *********, ******* ******* ****** ****** to **** * ***** ** *** competitor, *******, ***** *** ********* **************(*** ******) ****:

**** ** *** ****** ********,Telenoc ********* ****** and requested to visit the client with them as they were confident Mcdonalds IT dept will sign the deal with them only. Hanwha ********** ****** ** **** ***** ******* despite knowing that telenoc was not even quoting hanwha. [emphasis added]

***** ******* ****** ******** ***** ****, Hanwha's ***** ****** ******* ***************** ************** **** **** **** *** "**** to ****" ** ** ******* **** email:

IPVM Image

Won ** *******/****

********** ********'* ************** *** **********, ***** ******* ****** that ******'* ******* ******* ***** **** (**** ************) ** *** *********** ******* ** Qasr ********'* ******* ***, ******* *** Qasr/MSJ **** *** **** ********:

********** ********* ***** ******* ***Mohieddine ***** **** ******* ** ***. Mcdonalds does not care or have a say whether telenoc buys from GAPP or MSJ. Hanwha assigns the distributor. Ethically ****** ****** **** ******** ** *** ** **** **** ******* ** **** *******. But they put it on a platter and gave it to GAPP. [emphasis added]

** ******** ** *******'* ******** ***** losing ******* *** "**** **" *********, Hanwha **** **** **** "****** ******** their **** ***** ** **** *** not *******."

Accuses ******: "**** *********"

******* ******* ****** ** ***** "**** unethical" *** ****** **** *** **** to *** *********** ** ****** **** lower ******, *** ****** ***** ****** partners ****** ****** **** ****** *** no '******* **********' ******:

**lost *** ***** **** ***** *** ******* *** **** **** ******* ** ******, and we want others in the region to know about their ill practices and vested interest of their executives. [emphasis added]

******* **** *** **** ******* *** Hanwha **** **** *** ****, ** he ******. ******* **** *** "******" is ** ********* ********* ******* ****** and *** *********** *** **** **** Qasr's *******,***, "*** ********** **** ****** *** favored **** *** **** ***** ******** and **** *********** **** ** *** clients ** ****."

********* **** **********, ****** **** **** "Hanwha ****’* ******* *** ******* ** rebate ** **** ** *******."

*** *** *** ******* ** **** specifically *** **** **** **** *** this ****, "** **** ***** *** beyond ** ****** ***** ******* & no ***** ****** ********** *** ***** the ***** **** ** ******** ** Qasr ******** *** ****** ********".

******* **** **** ** ********** ***** but ***** *** ******* ****** *** no ***** ***** ******** ** ***** Arabia ** ********* **** ******** ** *****, ***.

McDonald's ********

*** ********'* ********* **** **** **** it ******** ** **** *** **** to ****/*** ******* ***** ***** *** ~$36,000 ****** (*** ********* ***) **** the ***********'*, ******* *** "***** ** the ******* ****'* **** *** ************ and *** ***** *** ****":

IPVM Image

***** **** ******* ********** ******* *** the *******. ***, ** **** *** one ** *** ********** *** *** project, *** *** “******** ** *** the ***”
***** ********* ********** ** ******* *** partner, ********* *** **** ***** *** payment ***** ** *** ** *** criteria ** *** *** ******** ********.
*** ***** ** *** ******* ****'* meet *** ************ *** *** ***** was ****. *********, ** ******* *** project ** ******* ******* *** **** the **** *****.

Telenoc: "** **** **** * *** ****** ******"

*******, ****'* ***** **********, **** ** did *** *** * ********** **** from ****** *** *** **** *** square ****** ** * "**** **** margin", ******* **** "******* [******] **** us * *** ********":

IPVM Image

** **** ******* ******* **** ********’* for **** ***** ** ** *** doing ******** **** **** ** ***** products/solutions. ** ********* ******* **** ****** andfrankly **** **** ** * *** ******** for the deal however ** **** ** *** ********** ** *** ***** ******* ******** andoverall ** **** **** * *** ****** ******. We had approached Hanwha again to get more discount however we couldn’t get it as they secured the discount for another company. McDonald’s is a strategic customer for TeleNoc & we retained the project with a very **** ******. [emphasis added]

******* ******** ** ***** *** ***** margin, *** **** ******** **** **** introduced ****** **** ** **** ****, stating, "** ****** *******, *********, *******, Hikvision & ****** ** *** *** client & ***** *** *********** **** finally **** ** ********'*".

Hanwha: "********** ** *** *** ********'* ********"

****** **** **** "****** *** **** with **** ******** ** **** ******* but ********** ** *** *** ********’* decision ** ****** * ********* ********* for **** *******." ****** ****'* ****** up ** ****'* ******* ********* ** this *****.

******: ****** ********* ** ****'* ******* questions. *** ***** **** *********, *** below:

IPVM: We are also quoting Qasr's claim that they were the first ones who introduced McDonald's to Hanwha equipment for this deal. The other bids were for Honeywell and TRASSIR. If Hanwha takes issue with this please let me know as well.
Hanwha: Qasr was the first partner for the project and Hanwha provided the best option to them. The end-user ultimately made their own decision after their own research and verification.
IPVM: Can Hanwha respond to the allegation that it helped Qasr's competitors get this deal, especially via lower prices, despite Hanwha's October 2022 pledge that this (supply-only) deal was "lock to" Qasr?
Hanwha: Hanwha provided their best price to Qasr but not Telenoc.
****:**** **** ******* ****** *** **** giving ******* **** ****'* ****************, **** ****** **** * ******** to **** ** ****?
Hanwha: There were credit line issue with MSJ which caused delivery issue and Hanwha had to change vendor to GAPP.
IPVM: Overall Qasr is concerned there may be some element of kickbacks or sweetheart deals between Hanwha and GAPP + Telenoc, due to this incident. Is there anything to this theory?
Hanwha: Hanwha didn’t provide any benefit or rebate to GAPP or Telenoc.

Common ********** *******

******** **** ***** *** *** ********, with *********** ********* **** *** **** the ******* ******** *** ****** ***** to *****. *** **** ******* *** Hanwha **** ** **** *** ** its ******* ******** **** * ****** in ******* ** "****" ** ** integrator.

** *** **** **** *** ****** from ** **********'* ***********, ** *** not *** *** *** ******* *** sell ****** ** ********'*, ********** ****-********** ******* ************* ******* ******** ** *** users.

*******, *** ************ *** ******** ******/******* involved ** **** ******* ********* *** companies ******** ********** ****** ******* *******, **** as *******, ******** ** **** *******.

Comments (24)

John Honovich