Huawei Fines Execs in Response to Business Fraud Issues
Li Na
DATE:  Jan 19 2018
/ SOURCE:  Yicai
Huawei Fines Execs in Response to Business Fraud Issues Huawei Fines Execs in Response to Business Fraud Issues

(Yicai Global) Jan. 19 -- Operational quality problems and business fraud have troubled units of Huawei Technologies Co. in recent years, per an internal document issued by Chief Executive Ren Zhengfei that made its way online.

The telephone maker held its top management accountable, fining Ren CNY1 million (USD160,000 million) and penalizing three interim CEOs and a human resources management president to the tune of CNY500,000 apiece.

The 'business fraud' mainly involved some of its overseas offices making fake operating data with false orders. Huawei "has already demoted the main responsible high-level executives involved in the data fraud, made them ineligible for promotions and cut their pay," a media outlet quoted an insider as saying.

Ren has repeatedly stressed the importance of self-criticism to Huawei. Two organizations in the company carry out relevant functions -- the committee for employee self-criticism and the one for moral compliance.

Established in 2006, the employee self-criticism committee provides policy direction and guidance and works on company-wide self-criticism system implementation, construction and supervision. Set up in 2014, the moral compliance committee works with the board of directors and the supervisory board, to form the troika of Huawei's corporate governance.

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Keywords:   HUAWEI,REN ZHENGFEI,Corporate Governance