According to numerous reports, DJI will lose up to $150 million due to massive employee fraud where employees raised drone part prices for personal gain.
Bloomberg and other sources say that DJI’s fired multiple employees who inflated prices for parts to take the extra cash. DJI found out about the “extensive” fraud during an internal probe. The company has contacted the authorities. Currently, over 40 people are being investigated.
The corruption probe is being considered the largest ever in the recent history of Chinese tech, Bloomberg claims. “DJI condemns any form of corruption strongly and has set up a high-level anti-corruption task force to investigate further and strengthen anti-corruption measures,” the company said.
DJI estimates that the incidences could have cost them up to RMB 1 billion.
DJI seems to be taking these incidences very seriously. Also, DJI doesn’t want its company tarnished by this. “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.”
Once DJI uncovered the employees committing fraud, the employees we fired. “DJI holds our employees to strict ethical standards and takes any violation of our code of conduct very seriously,” DJI says. “DJI took swift action to address this issue, dismissed a number of employees who violated company policies, and contacted law enforcement officials.”
In response, DJI says that it’s making internal changes to prevent this from happening again:
“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.”
The investigation is still ongoing and has no timeline for when it will end. “We continue to investigate the situation and are cooperating fully with law enforcement’s investigation,” DJI says.