DJI Company Confronts a Corruption of $150 Million Due to Employee Fraud
DJI has fired multiple employees and started an investigation with Chinese authority.
DJI, the world’s largest maker of drones, claims to have losses of up to 1 billion yuan (equivalent to $150 million) due to employee fraud. According to Bloomberg and other sources, the company fired people who supercharged the costs of several pieces to make money illicitly.
The problem was discovered during the internal investigation, which was then taken to the authorities and has since been treated as one of the largest corruption cases in the Chinese technology sector. According to the China Securities Journal, administered by the government, more than 40 employees were approached.
President Xi Jinping maintains a policy of dealing gravely with corruption and promises harsh actions to companies that are not “on the line.” DJI has a staff of more than 14,000 professionals – forecast to grow this year – and holds no less than 70 percent drone market, thanks to the Mavic line models and their good quality of image capture.
DJI officially comments on the case
The Chinese company issued an official statement on the matter.
“We are taking steps to strengthen internal controls and have established new channels for employees to submit confidential and anonymous reports relating to any violations of the company’s workplace conduct policies,” it said in a statement. “We continue to investigate the situation and are cooperating fully with law enforcement’s investigation.”
“DJI keeps our employees under strict ethical standards and takes any breach of our code of conduct very seriously,” the statement said. “DJI moved quickly to address this issue, fired several employees who violated company policies and contacted law enforcement. We continue to examine the situation and are cooperating fully with the investigation.”
In an internal announcement that was circulated, DJI explained that the police are currently investigating sixteen cases and that 29 other employees have been dismissed. Most of them were part of the purchase service and made price agreements with suppliers.
“DJI does not tolerate corruption,” according to a spokesman, who emphasizes that the first investigation has only uncovered the tip of the iceberg.
“These actions do not represent DJI, our culture, or our 14,000 employees, who work hard every day to serve customers and develop cutting-edge technologies. We are taking steps to strengthen internal controls and have established new channels for employees to submit confidential and anonymous reports relating to any violations of the company’s workplace conduct policies,” said the company.
About a hundred people could be involved in the business, which came to light when the company revised its management processes in 2018. DJI builds 70 percent of the drones for private use worldwide.
However, if you think that DJI is a very big company, you can see that it is not that hard for some people in good positions to throw money in their pockets.