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Tencent fires 70 employees & blacklists 13 firms to combat corruption

Tencent fires 70 employees & blacklists 13 firms to combat corruption
Tencent fires 70 employees & blacklists 13 firms to combat corruption

China’s largest video games and social media company, Tencent Holdings Ltd. has reportedly fired no less than 70 employees on suspicion of bribery and money laundering in 2021.  It also listed the names of 13 companies that would be placed on a blacklist, sending a clear message that no contracts with them would be made in the future.

Tencent mentioned in a social media post that it has also reported over 10 people to the authorities for their involvement in breaking the law.

As per reports, the Chinese government has amplified its anti-corruption campaign over the past few years. Along with this, major tech companies have expanded their probes into such discrepancies, as their valuations have risen dramatically due to China’s recent tech boom.

Tencent is one such company that launched its anti-corruption campaign in 2019 and has been devotedly reporting the results of its examination ever since.

According to the firm, in 2021, a former employee of Tencent's digital music department was caught engaging in a favor exchange with its suppliers. In another incident, a staff member from its sports division was discovered to be profiting unethically, by entering into deals with Tencent using his own company.

It is worth noting that China has decided to re-establish control over its once-autonomous internet sector. The government stated that it would carry out a wide-ranging crackdown to punish any corruption discovered behind internet platform monopolies.

Notably, amid last year's regulatory storm, multinational technology giants such as Alibaba Group Holding Limited and Pinduoduo, Inc., among others, had rushed to announce billions of dollars in support of Beijing's "common prosperity" initiative.

As anti-corruption investigations into big tech companies gather steam, 2022 could end up being the ‘year of living precariously’ for some of China's most powerful, and affluent individuals.

Source credits –

https://money.usnews.com/investing/news/articles/2022-01-24/chinas-tencent-fires-70-staff-blacklists-13-firms-in-anti-graft-campaign

About the author

Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.