Foxconn Second Former Executive Detained in Bribery Probe

Photographer: Ashley Pon/Bloomberg

Hon Hai Precision Industry Co. signage is displayed outside the company's headquarters in the Tucheng district of New Taipei, Taiwan. Close

Hon Hai Precision Industry Co. signage is displayed outside the company's headquarters... Read More

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Photographer: Ashley Pon/Bloomberg

Hon Hai Precision Industry Co. signage is displayed outside the company's headquarters in the Tucheng district of New Taipei, Taiwan.

A former Foxconn Technology Group executive was detained yesterday by an order of a Taiwan judge, making him the second former employee ordered to be held in an investigation of bribe payments from suppliers.

The former executive, who had been free on bail, can be jailed as long as two months and investigators can seek a further two-month extension before filing any charges, Huang Mou-hsin, deputy chief prosecutor of the Taipei District Prosecutors Office said by phone today.

The Taipei-based maker of Apple Inc.’s iPhones and iPads said last week it is cooperating in the probe conducted by Taiwanese authorities. Chinese authorities had arrested an executive in Shenzhen suspected of accepting bribes from suppliers, Taiwan’s Next Magazine reported in January 2013.

Foxconn didn’t immediately respond to an e-mailed request for comment. The company said in a Jan. 21 statement it discovered breaches of its code of conduct in an internal investigation.

Penalties in the case may be light unless the corruption can be proved to have caused substantial damage to the company, Chang Chia-chun, a lawmaker who is advocating for tougher sentences in cases of corporate corruption, said by phone today.

Those found guilty of any illegal actions should be “prosecuted to the fullest extent of the law,” Foxconn said earlier. The former executive joins an ex-colleague who has been detained since Jan. 22, after prosecutors successfully appealed his release on bail.

Two other former Foxconn employees accused of taking bribes were released on bail Jan. 22. Taiwan’s Next Magazine reported last January that the case involved suppliers paying bribes to Foxconn employees responsible for purchasing surface-mount technology equipment and components worth tens of billion yuan in 2012.

To contact the reporter on this story: Adela Lin in Taipei at alin95@bloomberg.net

To contact the editor responsible for this story: Debra Mao at dmao5@bloomberg.net

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