toggle

AAPL Stock: 113.99 ( + 1.98 )

Printed from http://www.macnn.com

Pegatron distances itself from kickback investigation

updated 12:55 pm EDT, Wed August 18, 2010

Says Apple contracts should survive intact

Implication in a kickback scandal should not hurt Pegatron's OEM deals with Apple, the Taiwanese manufacturer suggests. The subsidiary named in the case, Kaedar Electronics, was only acquired in 2008 -- after alleged crimes -- and is not involved in its parent's supply chain for iPod and iPhone products, according to Pegatron. A spokesman earlier stated that Kaedar has been responsible for supplying iPod packaging for several years.

The company further claims Kaedar was only involved in paying commissions to agents to help compete for deals, not kickbacks. Because the situation is under investigation by a US federal court however, Pegatron says it has nevertheless suspended the Kaedar executives involved. Kaedar's original operating team is said to have been left intact after the acquisition, part of a hands-off approach by Pegatron.

The company is one of two primary manufacturers of the iPhone 4. The other is Foxconn, which has been embroiled in controversy of its own because of sweatshop-like working conditions and a rash of suicides. As one step the company has increased wages, but there is no word on whether overtime hours have shrunk to reasonable levels.






by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

MacNN Sponsor

Recent Reviews

DoxieGo Portable Scanner

Sometimes, people need to scan things, but having a computer at hand to do so isn't exactly feasible. Maybe it's the home of a relat ...

Dell AD211 Bluetooth speaker

For all of the high-priced, over-engineered Bluetooth speakers in the electronics market, there is still room for mass-market solution ...

VisionTek 128GB USB Pocket SSD

USB flash drives dealt the death blow to both the floppy and Zip drives. While still faster than either of the old removable media, sp ...

toggle

Most Commented