Chinese police probe kickbacks by Foxconn managers

Jan 10, 2013

(AP)—Hon Hai Precision, a leading maker of iPhones and other high-tech gadgets, has said it is working with Chinese police probing allegations that its employees solicited kickbacks from suppliers.

Hon Hai, also known as Foxconn Technology, said in a statement late Wednesday that it will "thoroughly investigate" the alleged kickback case and also review its procurement procedures to close any possible loopholes.

It said its operations in China had not been affected by the case.

Hon Hai produces iPhones and iPads for Apple and also assembles products for global firms including . and Hewlett-Packard Co.

Taiwan's "Next" weekly reported earlier this week that a Foxconn manager had been detained by police in the southern Chinese city of Shenzhen over bribery allegations.

The island's China Times newspaper quoted unidentified sources as saying Hon Hai is investigating a dozen other employees suspected of having taken and that it has suspended its purchases from an equipment maker accused of offering bribes to the employees.

Hon Hai employs 1.2 million people in some 20 factories spread out across China.

The company has previously come under scrutiny for labor policies that allegedly led a dozen workers to commit suicide.

The latest allegation has raised questions about the electronics giant's internal management problems amid its rapid expansion to keep up with growing demand for its components.

Explore further: Two more former Sony workers sue over data breach

5 /5 (2 votes)
add to favorites email to friend print save as pdf

Related Stories

Hon Hai to hike salaries for Taiwan staff

Apr 05, 2012

Taiwan technology giant Hon Hai, which makes gadgets for Apple, said Thursday it would hike salaries for its Taiwan staff as prices on the island soar.

Taiwan's Hon Hai looks to robot industry

Oct 31, 2011

The parent company of Taiwanese tech giant Foxconn plans to mass produce industrial robots as part of its efforts to cope with labour shortages and rising wages.

Taiwan's Hon Hai buys new factory site in Brazil

Nov 16, 2012

Taiwanese technology giant Hon Hai said Friday it has acquired a piece of land in Brazil for $12.6 million as part of its plans to expand its operation in the South American country.

Parent of Taiwan's Foxconn reports profit drop

Oct 31, 2011

The parent of Taiwan technology giant Foxconn, which makes iPads and iPhones for Apple, said Monday its third-quarter profit dropped, with analysts pointing to the cost of moving factories in China.

Recommended for you

Two more former Sony workers sue over data breach

5 hours ago

Two more former employees of Sony Pictures Entertainment are suing the company over the massive data breach in which their personal and financial information was stolen and posted online.

Constantly changing online prices stump shoppers

6 hours ago

Online shopping has become as volatile as stock market trading. Wild, minute-by-minute price swings on everything from clothes to TVs have made it difficult for holiday shoppers to "buy low."

'Interview' ordeal at Sony just its latest crisis

10 hours ago

How do you say "damage control" in Japanese? Sony Corp. is sealed within a hermetic cone of silence as executives try to prevent the slow motion train wreck at Sony Pictures from damaging the rest of the ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.