Foxconn Managers Arrested in iPhone Components Bribery Investigation
Published on: 22nd Jan 2014
Three senior Foxconn managers were arrested and bailed following an investigation into bribery at the electronics assembly giant.
Taiwanese authorities raided 19 addresses yesterday following a year long investigation into the allegations. At least 10 executives at Foxconn and its suppliers were questioned by the police.
Taipei's District Prosecutors Office also took the suspected middleman Hao Hsu-kuang into custody.
Suppliers are suspected of paying bribes to Foxconn managers to get contracts. It has been reported that in 2012 alone, the bribes could have exceeded USD3 million for supplies to just one factory in China. It's not known if the bribery has expanded to other locations.
It has been claimed that suppliers wanting to provide components for Apple's iPhone had to offer incentives to the buyers at Foxconn worth 2.5 percent of the total order value.
Foxconn itself notified the police in both China and Taiwan of its concerns last year.
The "integrity of our employees and suppliers is something we take very seriously," the company said in a statement following the police raids, adding that "The discovery that a small group of employees and suppliers violated our code of conduct is very disappointing,"