Cisco Systems, the world’s biggest maker of network equipment, has suspended Carlos Carnevali, its vice president in Latin America, as he and others are about to stand trial in a Sao Paulo court in Brazil on charges of tax-evasion.

Carnevali’s dismissal is part of Cisco’s response to the arrests last month of several people, including Carnevali, for alleged smuggling and tax evasion in Brazil. The Brazilian federal authorities claim the scheme could involve the evasion of $US850m (₤411m) in taxes.

‘Our preliminary review as well as information brought to our attention by authorities strongly suggest that at least this one Cisco Brazil employee was pursuing a personal agenda for his own benefit,' Cisco said in a statement.

The Brazilian judge overseeing the case formally opened the criminal proceedings in the case last Thursday in Sao Paulo, the Financial Times reports.

Further reading:

More arrests in Brazil tax evasion crack down

Cisco in damage control after Brazil tax raids

Read the story in Financial Times