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Hon Hai says being investigated in China after bribery report

Source: Thomson Reuters Foundation - Thu, 10 Jan 2013 05:53 GMT
Author: Reuters
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    TAIPEI, Jan 10 (Reuters) - Taiwan's Hon Hai Precision Industry <2317.TW> said it has been under investigation by Chinese legal authorities, after a Taiwanese magazine reported an executive had been arrested in China last year for allegedly accepting bribes from suppliers.

   "Our employees and suppliers involved are being investigated, we will make announcements once there is a legal outcome," Hon Hai, the flagship unit of Foxconn Technology Group, said in a statement issued late on Wednesday.

    The world's largest electronics contract manufacturer issued the statement after Taipei's Next Magazine reported this week that Hon Hai had turned in a senior executive to police in China last September, and that two other executives had returned to Taiwan. 

   Hon Hai said many of the details in the Next Magazine report were "false", but did not detail them. Hon Hai did not say how long it had been under investigation, and did not say if any of its executives had been arrested.

   Hon Hai said Chairman Terry Gou had ordered an internal investigation and a review of its anti-bribery guidelines on procurement.

   The company said its Taiwanese supply chain and its business in China were operating normally.

   At GMT 0420 GMT, shares of Hon Hai were up 0.2 percent, underperforming the broader market's <.TWII> 1 percent rise.

   Shares of Foxconn Technology Group's Hong Kong-listed unit Foxconn International Holdings <2038.HK> were down 0.1 percent.

(Reporting by Clare Jim; Editing by John Mair and Paul Tait)

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