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Foxconn staff arrested for kickbacks

Bribes from suppliers

Foxconn, which turns out stuff for Apple, is at the centre of a bribery scandal. Liao Wan-cheng and Teng Chih-hsien, who were senior managers at a Foxconn procurement unit, have been charged with breach of trust for accepting kickbacks from 10 suppliers in exchange for clearing quality checks and buying their equipment.

Another unnamed middleman was also charged along with three other former employees after investigators launched island-wide raids earlier this year to search residences and offices of some suppliers. Taiwanese media reported last year that Teng had been detained by police in the southern Chinese city of 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 in China had not been affected.

Prosecutors said they had no plans to investigate Foxconn's clients, finding no evidence in the yearlong investigation that they were involved in the alleged bribery. Analysts said bribery is common in Asia's electronics manufacturing industry and component makers are eager to influence procurement managers to get chosen as suppliers or to get better deals.

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