Criminal charges laid in the US against Chinese technology giant Huawei could scuttle a $136 million 4G rail network communications contract awarded to the company by the State Government.

Transport Minister Rita Saffioti told The West Australian yesterday that the fraud and conspiracy charges levelled by the US Department of Justice have prompted a review of the contract to ensure Huawei can still deliver on it.

On top of the US charges, which are linked to deals allegedly done with outlawed Iran, the Trump administration is threatening to order a trade embargo against Huawei.

“The Public Transport Authority is currently seeking advice from the contractor regarding any potential impacts of these risks on the delivery of the project,” Ms Saffioti, pictured, said.

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She said the Government needed assurances that any steps taken by the US would not affect the supply of components needed for the rail contract.

The US indictment, which comes after the arrest of Huawei executive Meng Wanzhou in Canada late last year, accuses the company of lying to the US Government about business ties to Iran.

According to FBI and US Justice Department officials, Huawei will be prosecuted for “bank fraud and conspiracy to commit money laundering”.

“Huawei operated Skycom as an unofficial subsidiary to obtain otherwise prohibited US origin goods, technology and services, including banking services, for Huawei’s Iran-based business,” the indictment alleges.

The State Government awarded the contract to replace the communications system used by train drivers on the network in mid-2018.

It prompted national security concerns from the Opposition, which Premier Mark McGowan dismissed because the Australian Security Intelligence Organisation was consulted about the contract.

Australian-Chinese relations have been tense since the Federal Government banned Huawei from having any role in the country’s new 5G network rollout.

A spokesman for the Premier said yesterday that the review was on logistical rather than security grounds.

Earlier yesterday, Mr McGowan said Huawei had contracts throughout Australia and that ministers in the previous government had Huawei phones.