updated 02:47 pm EST, Wed January 22, 2014
Dozen or more suspects taken into custody
At leas a dozen current and former senior managers at Foxconn have been arrested for accepting bribes from iPhone parts suppliers, according to Tencent. The scheme is alleged to have originated with the company's retired senior VP, Liao Wancheng (pictured). Suppliers were made to pay 2.5 percent of their sales in kickbacks, as well as additional bribes for each new order. The people receiving the cash are said to have reaped "hundreds of millions" in Taiwanese dollars.
Apart from Liao, another person named in reports is Deng Zhixian, the head of Foxconn's Committee of Surface Mount Technology. Deng was held by Chinese police in Shenzhen last September, but Liao managed to return to Taiwan.
Foxconn is a linchpin in the electronics industry, responsible for manufacturing devices for a number of Western corporations. Its biggest individual client is Apple, and the iPhone is Apple's bestselling product, making iPhone contracts especially lucrative.