BYD reveals that many of its employees were involved in corruption: privately opening casinos, accepting bribes, and many people were arrested

BYD reveals that many of its employees were involved in corruption: privately opening casinos, accepting bribes, and many people were arrested

Many employees of BYD (002594.SZ), a leader in new energy vehicles, have been found to have problems with corruption.

Liao, a senior mechanical engineer in the Second Business Unit, accepted kickbacks from suppliers.

Duan, the production foreman of the 19th Business Unit, played mahjong with supplier personnel and had financial dealings with them.

Zheng, a process engineer from the 19th Business Unit, Yu, a production foreman, Hu, a production team leader, and Zhang, a painter, played mahjong with supplier personnel.

Liao, the project leader of the Equipment Technology Center of the Electronic Business Group, accepted bribes from suppliers.

Gu, a resource development engineer at the Supply Chain Management Center of the Electronics Business Group, violated regulations by accepting banquets and gifts from suppliers.

Li, a security guard in the third division of rail business, was detained by the public security organ on suspicion of opening a casino; he also violated regulations by accepting meals and entertainment from staff of a waste recycling company.

Shen, the security team leader of the third division of rail business, Zhou, the security team leader, and Zhang, the security guard, violated regulations by accepting meals and gifts from staff of a waste recycler.

BYD stated that for the above-mentioned employees who have committed disciplinary violations, in addition to the fourth-level punishment (termination of labor contracts), their information will also be entered into the delisting query system; for units that violate the integrity cooperation agreement, they will be held accountable in accordance with the agreement; for suspected illegal and criminal acts, they will be handed over to judicial authorities for handling.

A person from BYD's Securities Affairs Department told reporters, "The persons found to have violated laws and disciplines have been handed over to relevant departments for handling. This incident has no adverse impact on the company's production and operation."

This is not the first time that BYD has announced "typical cases of investigation and punishment". In the third quarter of 2020, 12 typical cases were announced for investigation and punishment. Liu, a sample maker in the Second Business Unit, illegally collected funds from suppliers; Chen Bing, the person in charge of warehouse spare parts in the Eleventh Business Unit, and Chen, the person in charge of the warehouse spare parts department, played cards with logistics business interface personnel and had economic dealings.

In the second quarter, nine typical investigation cases were announced. Liu, the head of the operations department of BYD Auto Sales Co., Ltd., took advantage of his position in violation of foreign investment regulations to arbitrarily replace 28 gift cards purchased by the company for marketing activities, and had personal transactions with Sun, the technical section chief of the second business unit, and illegally received kickbacks from supplier salesmen.

In the first quarter of this year, five typical cases were announced. Wen, a comprehensive law enforcement officer, was dismissed for accepting a bribe of 57,560 yuan from a businessman by improper means such as kickbacks. Lei was dismissed for arranging for recruits to join the company through internal recommendations and obtaining recommendation rewards in violation of regulations.

It is reported that BYD has an audit and supervision department, which is responsible for supervision, auditing, compliance, discipline inspection and other departments, and conducts comprehensive review and supervision work independently of various business departments. Regarding procurement supervision, the audit and supervision department is independent of the procurement system and supervises procurement activities to ensure that the "sunshine procurement" policy is implemented.

Every quarter, BYD's regulatory authorities invite suppliers to complete a satisfaction questionnaire survey to understand the cooperation between BYD and its suppliers and to promote and maintain good relations with them.

During every holiday, BYD’s Supervisory Office will issue a “sunshine communication” policy to suppliers, requiring them not to proactively give gifts to BYD employees or provide improper benefits.

BYD held a ceremony for senior executives to take an oath of integrity and self-discipline in January 2019. Wang Chuanfu, chairman and president of the company, led all vice presidents, CEOs and COOs of each business group, general managers of each business unit and other senior managers to take an oath of integrity and signed the "Company Senior Management Integrity and Self-discipline Commitment".

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.

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