Police Detain Senior Huawei Executive Following Corruption Probe
The head of consumer sales at smartphone maker Huawei, China’s biggest maker of smartphones, has been rounded up by the Police in China, as part of an investigation into corruption at the big smartphone Company.
Teng Hongfei who was to attend CES 2018, has been detained on “suspicion of taking bribes,” the Chinese Company has admitted.
Hongfei played no role in the Australian operation.
“The authorities are investigating the matter, and we defer to their discretion as to what can be disclosed,” Huawei said. “We take our business ethics extremely seriously, and have zero tolerance for corrupt behaviour.”
According to Bloomberg the company has targeted corruption within its ranks in the past with several executives being sacked following Company investigations however thousands have got off with a warning.
In 2015, Ren told the World Economic Forum in Davos that Huawei needed to step up internal policing after forgiving more than 4,000 workers — including senior executives — for involvement in graft and fraudulent business practices.
The company, which says it’s controlled by employees, was founded by former army engineer Ren Zhengfei and is considered to have strong government relations.
The company made no mention of a replacement for Teng.
The consumer division, comprising mainly smartphones, reported a 36 percent rise in revenue to 105.4 billion yuan ($16 billion) during the first six months.