Top drone maker DJI uncovers $148m in staff corruption

Tech companies dogged by persistent supply-chain bribery

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DJI, maker of the Phantom 4 Pro+ pictured here, accounts for about 70% of the world drone market. © Reuters

TAKASHI KAWAKAMI, Nikkei staff writer

GUANGZHOU -- The discovery of more than 1 billion yuan ($147.5 million) in staff corruption at China's DJI, the world's biggest drone maker, is drawing attention to the country's persistent problem with supply-chain bribery.

DJI's case came to light after internal documents leaked online. According to local media reports, DJI's internal investigation found that procurement officials had received kickbacks for accepting components that had not passed quality tests or for paying above-market prices. The company's component costs were inflated last year by more than 20% because of such practices.

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