DJI Technology, China’s largest drone manufacturer, is looking at a substantial financial loss in the midst of ongoing investigations wherein 45 current and former employees are facing allegations of corruption.
According to a report from Yicai Global, more than 100 individuals are involved in an alleged widespread corruption scandal for falsely increasing the prices of parts and materials used to make DJI drones.
The report says 26 people allegedly involved in the scandal ‘are from the research and development department, as well as the procurement division.’ Another 19 individuals work in other various departments including administration, design, factories and sales. 16 people have been reported to authorities regarding the allegations.
In a statement to DroneDJ, DJI said:
‘We hold our employees to the highest ethical standards and take any violation of our code of ethics very seriously. During a recent investigation, DJI itself found some employees inflated the cost of parts and materials for certain products for personal financial gain. We took swift action to address this issue, fired the bad actors, and contacted law enforcement officials. We continue to investigate the situation and are cooperating fully with law enforcement’s investigation.’
DJI is facing losses of more than CNY1 billion (approximately $147.6 million USD), according to Yicai Global’s estimates. It is believed DJI products suffered from a 20% price increase in 2018 due to the alleged widespread corruption within the supply chain.