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Corruption At Huawei: Sales Chief Arrested In China

Dec 27, 2017 | Uncategorized | 0 comments

Chinese smartphone maker Huawei appears to continue to have problems with senior employees who offer benefits to minions against illegal payments.Now, a Vice President of the Consumer Business Group for China has just been arrested for being accused of corruption.

Huawei Corruption

As the website TechNode cites reports from China, a manager named Teng Hongfei has recently been arrested by the security authorities. The background is allegations of corruption, but neither Huawei nor the Chinese authorities have so far given specific information. Teng is the head of Huawei’s  Consumer Business Group in China.
The Consumer Business Group is the large division within Huawei that specializes in the distribution of consumer smartphones, tablets, and personal computers, and has become the largest smartphone supplier in China. Meanwhile, Huawei has become the third largest smartphone manufacturer in the world and has set itself the goal of overtaking Apple in second place behind Samsung within the shortest possible time.
Also Read: Huawei P11 To Be Released In The First Quarter Of 2018

Teng is accused of accepting bribes, although it is unclear who paid what sums to the Huawei manager. The company referred to its strict internal ethics policy, which does not tolerate corruption in any way. Due to the ongoing investigation, the company did not want to comment on the case yet.

Also Read: Huawei Honor View 10 Announced

So far, it is unclear who might succeed Teng. Teng had previously worked for Huawei, Nokia, and Samsung, where he also held senior positions. It is currently speculated that his arrest is related to bribery by traders who repeatedly try to gain benefits in China from equipment manufacturers by paying illegal funds.

Huawei himself is always with a hard hand against corruption in its ranks. It was not until January 2017 that six managers from the Consumer Business Group were accused of sharing internal information with Chinese competitors LeEco and Coolpad. At that time, the main person in charge was also arrested and he was behind the development of the Huawei P6, which began the rise of Huawei as the first competitor in the smartphone market a few years ago.

Also Read: Huawei Installed GoPro Quick App In Phones Without User Consent

In 2014, Huawei had nearly 120 employees on the door because they could prove corruption. At that time, the company was able to win back around 47.5 million euros illegally paid bribes. In 2015, company founder Ren Zhengfei announced that he wanted to crack down on internal corruption even more – after Huawei had previously granted a kind of amnesty involving more than 4,000 employees who had previously been involved in bribery and fraudulent business practices.


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