Loss of ‘$150 million’ because of employee fraud at DJI
SZ DJI Technology Co., Ltd. is a private Chinese drone maker company, founded in 2006, headquartered in Shenzhen, Guangdong (goes with business name DJI), reported on Monday that they have to face a loss of tens of millions of dollars because of employee fraud.
The Chinese company, World’s biggest producer of drones, said that the company had to fire multiple employees when in an on-going internal investigation they found that some of their employees are indulged in fraud for a long time. The company in one of their statements clarified about the fraud stating that “various employees inflated the cost of parts and materials to fill their own pockets.”
CEO Frank Wang, put the number of employees it fired around 29 and the amount of capital loss faced by the company was put around a Billion yuan ($150 million).
The corruption scrutiny is being viewed as the largest in the recent history of Chinese tech, according to Bloomberg and other sources. After a clampdown by President Xi Jinping, Chinese companies have been forced to take immediate and strict measures against any fraud or corruption or else the company faces a series of serious legal obligations. For a high-profile tech giant like DJI, the board members structured up a high-level anti-corruption task force to deal with the internal fraud going on under their own nose, investigating about 40 employees.
“We are taking all the necessary steps to establish a more strongly controlled internal environment, to avoid any future case of internal fraud & trickery and we will continue to investigate the current situation and will cooperate fully with the law enforcement’s officials,” said the company.