Taiwanese police have reportedly arrested at least a dozen current and former senior managers at Foxconn. They have been charged with accepting bribes from components suppliers for the popular iPhone the company assembles for Apple.
Under the alleged scheme, suppliers were required to commit 2.5 percent of their sales to kickbacks and to pay additional bribes for each order. The news was first reported by Chinese-language siteTencent Technology.
The plot was apparently cooked-up by retired senior vice president Liao Wancheng. Deng Zhixian, executive in charge of Foxconn’s Committee of Surface Mount Technology, was also named in the scheme.
The investigation has reportedly been ongoing for more than a year.
Those involved in the scheme reportedly netted “hundreds of millions” of New Taiwan Dollars. ($100 million NTD equals approximately $3.3 million USD.) The funds were funneled into the ever popular offshore accounts, which belonged to dummy corporations, before being funneled back to Taiwan.