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Foxconn executives arrested for kickbacks from iPhone suppliers

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.

by MacNN Staff



  1. OldMacGeek

    Fresh-Faced Recruit

    Joined: 08-04-10

    Wow, how . . . . shocking.

  1. sunman42

    Fresh-Faced Recruit

    Joined: 11-09-11

    Really, I mean, corruption in the Chinese business world? Unheard of!

  1. Flying Meat

    Dedicated MacNNer

    Joined: 01-25-07

    Jeez. What are ya gonna do?
    Make 'em cough up every cent, AND a hefty fine, AND prison time.
    Just a suggestion. Heck. We can't even manage that kind of justice here in 'merca.

  1. Charles Martin

    MacNN Editor

    Joined: 08-04-01

    100M Taiwanese dollars = $3.3 million US (just for reference)

  1. mac_in_tosh

    Forum Regular

    Joined: 12-14-11

    Maybe they should be made to work in their factory, like the rest of their employees.

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