Shane Cole
Taiwanese police have reportedly arrested at least a dozen current and former senior managers at Apple manufacturing partner Foxconn on charges that the group accepted bribes from upstream iPhone component suppliers.
Under the alleged scheme, suppliers were required to commit 2.5 percent of their sales to kickbacks and to pay additional bribes for each order. The news was first reported by Chinese-language site Tencent Technology.
The plan is said to have been concocted by retired senior vice president Liao Wancheng. Deng Zhixian, the executive in charge of Foxconn's Committee of Surface Mount Technology, was also named.
The investigation has been ongoing for more than a year. Deng was detained by police in the mainland Chinese city of Shenzhen last September, but Liao was able to return to Taiwan at the time without incident.
Participants are said to have netted 'hundreds of millions' of New Taiwan Dollars — Â NT$100 million equals approximately $3.3 million — Â from the arrangement. The funds were reportedly funneled into offshore accounts belonging to dummy corporations and later repatriated to Taiwan.
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11 Comments
This is obviously Apple’s fault.
Any of those "upstream" component suppliers Samsung?
At least Taiwan has laws against this. I wonder if South Korea would ever investigate anything like this against Samsung. Of course, Samsung probably own most of their suppliers anyway.
[quote name="Tallest Skil" url="/t/161692/foxconn-executives-jailed-on-suspicion-of-taking-kickbacks-from-iphone-parts-suppliers#post_2461067"]This is obviously Apple’s fault. [/quote] Well it's never Foxconn's fault when some factory worker commits suicide. Foxconn is untouchable. The shit just rolls uphill (to Tim Cook) /s
They'd fit nicely in with all the douchebag American companies, Wall Street, and Bankers screwing over Americans...