(Yicai Global) Jan. 30 -- Chinese drone firm DJI Technology has started its war against fraud.
Shenzhen-based DJI issued an open letter today, declaring zero tolerance regarding graft. During the company's management reform last year, many problems emerged, the biggest one of them being corruption, the letter revealed.
"Corruption in the firm is much more serious than expected, and it is just the tip of the iceberg," the firm said in a statement earlier. DJI handed in 16 of its former employees to authorities while more than 100 people were involved in the case which hiked purchase prices up to 20 percent, Yicai Global reported on Jan. 18, citing a report from All Weather TMT. The losses were expected to exceed CNY1 billion (USD147.6 million).
DJI founder and Chief Executive Wang Tao has submitted a proposal to Shenzhen's regional government suggesting that administrators and corporations should strengthen cooperation by establishing a credit database involving employees at high-risk positions.
Corruption is hard to tackle because these criminals can change jobs easily while the damage that they cause to a company reputation can be widespread and for the long-term, the letter showed. Once relocated, suppliers may even choose to continue working with the corrupt person instead of cooperating with the original buyer to complete the investigation.
The firm illustrated how minor, gradual graft raises prices. Even if purchase prices would rise only from 5 to 10 percent, the company will pay from 16 percent to 33 percent more in expenses due to the procurement process that consists of various steps.
Wang founded DJI in 2006 and became Asia's youngest tech billionaire in 2017, according to Forbes magazine's 100 Richest in Tech list. The firm has grown to have 14,000 employees.
Editor: Emmi Laine