TAIPEI: Taiwan's Hon Hai Precision Industry has come under further scrutiny.
The company - which also goes by the trade name Foxconn - said it is co-operating with a probe by China's law enforcement officials into alleged bribery of its supply-chain partners by employees.
Hon Hai also said it is conducting a full review into its policies and practices to strengthen internal controls.
China Times newspaper reported the department involved in soliciting bribes from suppliers is called Surface Mount Technology.
It is in charge of all major procurements of Hon Hai Precision.
As the world's largest electronics contract maker, it is believed the company's purchase of equipment amounts to tens of billions of US dollars a year.
Local media reported Hon Hai's top management first got an anonymous letter last year that tipped them off on the alleged bribery.
Chairman Terry Gou was believed to be furious and immediately reported the case to the Chinese police, which later led to the arrest of one executive.
Hon Hai is reportedly investigating a dozen other employees suspected of having taken bribes. It has suspended its purchases from an equipment maker accused of offering bribes to the employees.
But Hon Hai said the case is not affecting the company's operation.
Mr Gou had ordered an internal investigation, as well as a review of its procurement procedures.
The incident has again put Hon Hai under scrutiny after a string of worker suicides at its factories in 2009.
Since then, it has tried to improve working conditions and wages for its workers.
But analysts say the latest case is not likely to have any major impact on Hon Hai's operation or its share price.
- CNA/xq
Foxconn cooperating with authorities in bribe probe
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Foxconn cooperating with authorities in bribe probe
