Foxconn Employees Charged with Bribery
Published on: 23rd May 2014
Note -- this news article is more than a year old.
Five former employees at assembly giant, Foxconn have been indicted by Taiwan prosecutors for taking bribes to promote some component suppliers over others.
Following a year-long investigation, the prosecutors claim that the five former employees took bribes from ten companies over a three year period worth around USD5.3 million.
In addition to preferential treatment in bidding for supply contracts, the components suppliers were also paid faster than their rivals, which can have a beneficial impact on cash flows.
Foxconn said that it assisted the investigation once it was made aware of the problem.
"Suppliers should continue to proactively cooperate with prosecutors in this investigation. For involved suppliers which had come clean with prosecutors, the company would handle the situation in a confidential manner." Foxconn said in a statement.
Foxconn added that "suppliers who were found involved in this case, Foxconn and its units would not select them in future and would ask for compensation according to the law,"
The suppliers have not been named though.