Technologies uncovers corruption in internal probe
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[September 12, 2014]
By Gerry Shih
BEIJING (Reuters) - Huawei
Technologies Co Ltd, China's largest telecom equipment
maker, found four employees in violation of the
company's policies on corruption as part of an internal
inspection, a source familiar with the matter said.
In response to the findings, Huawei has held discussions with
employees on what constitutes graft and affirmed the company's
zero-tolerance on bribery, the source said, declining to be
identified because he was not authorized to speak about the matter
to the media.
The internal probe coincides with a government crackdown on
corporate misbehaviour within both foreign and domestic firms. Chief
Executive Ken Hu told the Financial Times on Thursday that graft
inspections were done every year and "nothing new," adding that it
only attracted media attention this year.
Huawei has declined to address the exact nature of the cases. Local
financial news outlet Caixin, which first reported the inspection
last week, said a total of 116 employees were implicated in
soliciting and accepting bribes from outside sales agents in
exchange for rebates.
"In the enterprise market, Huawei is firmly implementing an open,
transparent and stable channel policy, in order to pursue fairness
and justice in the market, and to fight firmly against any form of
employee practice that fails to meet the standards we set for
ourselves," Huawei said in a statement this week.
Despite Huawei's leadership vowing for years to tackle corruption
within the ranks, the company has been trailed by allegations of
bribery particularly in emerging markets where it has enjoyed robust
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In the past year, Huawei has been investigated in Uganda and
Zimbabwe over how it won telecom contracts. In 2012, executives from
Huawei and Chinese rival ZTE Corp, were sentenced by an Algerian
court to 10 years in prison on bribery charges.
In the meantime, Huawei has pledged greater transparency in its
technology to address concerns about potential espionage. The
company has offered to give security-cleared officials in the United
Kingdom and Australia complete access to its software source code
and hardware equipment.
(Editing by Ryan Woo)
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