Huawei uncovers corruption in internal probe

A man walks past a Huawei logo in Paris, May 7, 2014.[Photo/Agencies]

Huawei Technologies Co Ltd, China's largest telecom equipment maker, found four employees in violation of the company's policies on corruption as part of an internal inspection, a source familiar with the matter said.

In response to the findings, Huawei has held training sessions to educate employees on how to steer clear of possible bribery, the source said, declining to be identified because he was not authorized to speak about the matter to the media.

The internal probe coincides with a government crackdown on corporate misbehavior within both foreign and domestic firms. Chief Executive Ken Hu told the Financial Times on Thursday that graft inspections were done every year and "nothing new," adding that it only attracted media attention this year.

Huawei has declined to address the exact nature of the cases. Local financial news outlet Caixin, which first reported the inspection last week, said a total of 116 employees were implicated in soliciting and accepting bribes from outside sales agents in exchange for rebates.

"In the enterprise market, Huawei is firmly implementing an open, transparent and stable channel policy, in order to pursue fairness and justice in the market, and to fight firmly against any form of employee practice that fails to meet the standards we set for ourselves," Huawei said in a statement this week.

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