Concerns raised in Parliament over Sydney defence supplier Pioneer Computers’ alleged links to China

A Sydney company that supplies computers and servers to the Australian military has been managed for decades by a businessman with alleged links to Beijing’s United Front organisation, prompting security concerns to be raised in Federal Parliament.

During a Senate estimates hearing on Wednesday evening, defence officials were quizzed about contracts awarded to Pioneer Computers, a firm which is also supplying surveillance drones for trials conducted by the Western Australian Police Force.

In Parliament Liberal Senator Claire Chandler claimed that Pioneer Computers General Manager Jeff Li had been identified in archived online documents as a member of the Guangdong Overseas Exchange Association.

“Jeff Li has been named as an adviser to the Guangdong Overseas Exchange Association which operates under the Overseas Chinese Affairs Office in Guangdong province,” she told the Senate’s Defence, Foreign Affairs and Trade committee.

“These organisations are well known appendages of the United Front Work Department of the CCP (Chinese Communist Party). Is the Department aware that one of its contractors for military services has known connections with United Front?” she asked.

The Defence Department’s First Assistant Secretary for Joint Systems Gavin Rawlins responded by telling the shadow minister for cyber security: “I’m not aware of that information Senator.”

According to security scholars, the United Front Work Department operates through various overseas Chinese community organisations, which have vigorously defended the Communist Party beyond its shores and expand Beijing’s influence abroad.

Government tender records reveal that since at least 2007, Pioneer Computers has been awarded several contracts by the Department of Defence for IT hardware and related services.

In May this year the company received a $345,565 contract from Defence to provide “equipment and services”, which the department later confirmed was for trials of counter-drone capabilities under the LAND 156 program.

Mr Rawlins told the committee an “approach to market” was made for a range of sensors, and under the contract with Pioneer Computers the department acquired 30 handheld devices known as HC2 Version 2.

“The test and evaluation that is undertaken as part of this project isn’t completed yet. When that evaluation in that very controlled environment is examined then we’ll look at the next steps for this particular project,” Mr Rawlins said.

Defence Secretary Greg Moriarty also assured the committee that “security information and developments” that are brought to the department’s attention “are always taken into account”.

“We will take any information and that will go into the framework on which we approach this and anything else involving this company if we can get to the bottom of it,” Mr Moriarty said.

“Our defence industry security program has some criteria which steer companies in very firm directions about the sorts of arrangements, the ownership considerations, all of those matters.”

Senator Chandler told officials the situation was “pretty concerning” and “unacceptable” and demanded to know if the Department would now review any future dealings with Pioneer Computers.

“It’s not a great look is it if the Department has been outsourcing, or engaging with the services, with a company with known links to the CCP is it?”

“Well-meaning public servants in charge of keeping our country safe are happy to outsource, even to develop a test and trial capability, outsource part of that to a business that has direct links to the CCP”.

Pioneer Computers was established in 1996 and on its website claims to be “Australia’s leading manufacturer of ICT and IoT equipment and device(s)” including notebooks, PCs, servers, and smart sensors.

“Pioneer Computers is an approved supplier to all levels of government — Federal, State and Local. Pioneer Computers has a proven track record supplying IT solutions to a wide range of government departments, nationally, over many years.”

The company boasts production facilities in Sydney and overseas, and regularly participates in technology trade shows in China, Hong Kong and Taiwan, while selling products to customers across Asia, Russia, the Middle East and Africa.

In a statement to The Nightly, a spokeswoman for Pioneer Computers rejected suggestions that Jeff Li was, or ever had been, a member of the United Front organisation.

“Mr Li is not and never has been a council member of the Guangdong Provincial Overseas Chinese Affairs Office. He is not affiliated with the organisation,” the spokesperson said.

“As he is not affiliated with the organisation, there is nothing to disclose.”

According to his LinkedIn profile, Jeff Li has served as the Managing Director of Pioneer Computers Australia since 1996 and as General Manager of Pioneer.au.