Tencent dismisses 70 people and blacklists 13 companies as part of anti-fraud drive

By Ishika Dangayach on Jan 25, 2022 | 03:35 AM IST

• Tencent launched its anti-graft campaign in 2019

• Tech companies have increased their investigations into anomalies as their values and reputations have skyrocketed

Tencent Holdings, China's largest social media giant, announced on Tuesday that it dismissed roughly 70 employees and banned 13 companies from future contracts last year over bribery and embezzlement cases.

According to the corporation, Tencent will no longer cooperate with banned companies, and a handful of those who were fired have been reported to public security authorities.

As the Chinese government has increased its anti-corruption efforts in recent years, tech companies have increased their investigations into anomalies as their values and reputations have skyrocketed as a result of the country's IT-boom.

Tencent launched its anti-graft campaign in 2019 and has been routinely publicizing the findings of its investigations.

The video game giant claimed that in 2021, one incident of a former employee from its digital music section soliciting for and receiving favors from its suppliers.

Another case included a sports content employee earning from an agreement with Tencent through a firm he owned, according to the company.

In April 2021, China penalized Tencent as part of the antitrust crackdown on the country’s internet giants.

Sources told Reuters that Tencent expected a penalty of at least 10 billion yuan ($1.54 billion), less than what the Chinese authority fined Alibaba, but considerable enough for the State Administration of Market Regulation (SAMR) to set an example.

Inputs from Reuters

Picture Credits: Business Today

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