Foxconn execs charged with taking bribes to award iPhone supply contracts

Photo: Thomson Reuters

Several former execs at Foxconn have been charged with taking bribes from companies supplying the company with iPhone components, reports the WSJ.

Following a year of investigation, prosecutors said Thursday they have detained a former Foxconn general manager for allegedly taking kickbacks from supply chain partners. Prosecutors said three other former Foxconn employees were released on bail [after being charged] … 

Foxconn said (via CNET) that it had called in authorities after carrying out its own investigation in response to complaints by suppliers, who said that they had to pay managers kickbacks to qualify as iPhone suppliers and further bribes to ensure contracts were placed. Foxconn said it would cooperate fully with the authorities, who say there is no suggestion of any involvement on the part of any of Foxconn’s clients.

Any employees found guilty of any illegal actions or violations of our company’s Code of Conduct will be prosecuted to the fullest extent of the law.

We are also carrying out a full review of our policies and practices to identify steps we can take to strengthen such measures to further mitigate against such actions.

Around 40 percent of Foxconn’s revenue comes from Apple, at times making half a million phones per day. Both Apple and Foxconn are reportedly looking to reduce their mutual dependence, Apple looking to diversify its supply chain, and Foxconn keen to retain capacity for other clients.