Former Foxconn Employees Charged with Accepting Bribes from Supply Chain Partners
Several former Foxconn employees have been charged in Taiwan for allegedly accepting kickbacks from partner companies in Foxconn's supply chain, reports The Wall Street Journal. According to the report, a former general manager is being held on bribery charges and three former employees are released on bail. However, Apple and other Foxconn clients are not being investigated as authorities do not believe those companies were involved in the kickback scheme.
The bribery allegations were made public last year when an internal Foxconn audit revealed several employees were accepting kickbacks from supply chain companies. Foxconn then acknowledged the criminal activity and turned the employee(s) over to the Chinese police for investigation.
"We can also confirm that our internal investigation found these violations to be limited to the procurement of consumables and accessory equipment related to a small part of our business," Foxconn said in a statement. "The employees in question are no longer with our company."
The charges come as Foxconn has been under fire multiple times in recent years for labor violations. The company has also been working with Apple to improve conditions for employees in its city-like factories, but it has been a slow process. After agreeing in 2012 to examine worker pay and limit working hours, a recent Fair Labor Association report shows the company now is meeting the FLA's 60-hour work week, but still exceeds China's legal limit for weekly working hours and overtime.