Hon Hai catches internal moles, pays out 150 million in rewards

Hon Hai Group is actively "catching internal moles." Based on the three "internal mole" cases recently exposed in the media, Hon Hai Chairman Terry Gou has already paid out nearly NT$150 million in whistleblower rewards, hoping the hefty rewards will thoroughly root out corruption.

Hon Hai Group ranks first in domestic manufacturing by annual revenue, and its internal procurement projects are enormous. Terry Gou places great importance on employee integrity, establishing an "anti-corruption team" to catch internal moles, and offering a reward of 10 million yuan for whistleblowing reports verified as true. Recently, Hon Hai paid out approximately NT$150 million in "internal mole" rewards in one stroke, making it the largest such payout among domestic enterprises.

Following the earlier cases of former senior executives collectively demanding kickbacks from suppliers and a Taiwan-based manager stealing and selling iPhone handsets, a weekly magazine reported that Hon Hai recently uncovered more internal moles. The weekly reported that in response to this incident, Hon Hai Group's "mole-catching squad" has opened a case to track down the masterminds behind the scenes.

It is learned that Foxconn's Shenzhen Guanlan plant, which specializes in producing the iPhone 6 for Hon Hai Group, was shockingly found to have 1 million batteries leak out. Batteries that should have been scrapped from the production line instead flowed to a waste processing company in Hong Kong, China, which sold them to downstream vendors as brand-new, unused units at about 20 to 100 yuan each (about NT$100 to NT$500), with the resale windfall reaching over NT$100 million.

Regarding the battery theft and resale case, Hon Hai stated that the batteries were mainly production line scrapped items and should all be handled according to procedure. If a processing company breaches the contract, causing the batteries to flow into the market, Hon Hai will hold it accountable in accordance with the agreement, and has proactively submitted all case materials to judicial authorities for investigation, hoping the truth will come to light soon.