Taiwan slaps charges on ex-Foxconn employees
Print Edition
TAIWAN prosecutors yesterday indicted five former employees of technology giant Foxconn, including senior managers, for allegedly soliciting NT$160 million (US$5.3 million) in kickbacks from suppliers.
The development marks the latest setback for the world’s largest maker of electronic components, which has come under the spotlight over labor unrest, a spate of employee suicides and the use of underage interns at its Chinese mainland plants in recent years.
Liao Wan-cheng and Teng Chih-hsien, who were senior managers at a Foxconn procurement unit, were charged with breach of trust for accepting kickbacks from 10 suppliers in exchange for clearing quality checks and buying their equipment, prosecutors said.
A middleman was also charged along with three other ex-employees after investigators launched island-wide raids earlier this year to search homes and offices of some suppliers.
The allegations surfaced after Taiwan media reported last year that Teng had been detained by police in Shenzhen for allegedly taking bribes from suppliers.
Foxconn said at that time it was reviewing its acquisition procedures and the integrity of managers, and that its operations on China’s mainland had not been affected.
Foxconn has said the alleged violations were limited to the procurement of consumables and accessory equipment, and that the company alerted the authorities in Taiwan and mainland after an internal audit.
Foxconn said in a statement yesterday that it plans to seek compensation from the suppliers involved in the case.
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