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Regional manager sets up bank loan without company permission

Gigabyte recently made shocking headlines when it announced that it would be leaving the partnership it had created with long time rival ASUS. Originally, the plan was to create a joint venture, where the two companies could cooperate on developing and manufacturing new products. Called Gigabyte United, the joint venture would have allowed both companies to share and take advantage of the other's resources.

This week, Gigabyte announced that it had lost roughly $5 million USD due to an internal scandal committed by one of its regional managers. Chang Chaosong, factory manager at Ningbo Gigabyte Technology in China, allegedly listed Gigabyte as a guarantor for a bank loan towards a third party loan. By being a guarantor, Gigabyte would be liable to repay the loan if the third party did not repay it.

Unfortunately for Gigabyte, the company or person in question that borrowed the money from the bank did not repay the borrowed money, and Gigabyte was held accountable for the loss. What shocked company officials however, was the fact that Chang did not request company permission before setting up the transaction.

Gigabyte is currently investigating Chang's actions and where and why the transaction was setup in the first place. Chang is no longer with Gigabyte.

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Regional Manager???
By bplewis24 on 4/27/2007 4:56:49 PM , Rating: 2
How is it that a Regional Manager (as opposed to an executive or director of the company who are specifically named as signers) could legally enter Gigabyte (the corporation/company) into this agreement in the first place? Anybody with a broader knowledge of business practices/law care to help me out?

Brandon




RE: Regional Manager???
By Puddleglum1 on 4/27/2007 5:01:13 PM , Rating: 2
Ranking vs. Duties

A regional manager may indeed have executive authority. If a regional manager is in charge of an entire region's market, he would need that kind of authority...


RE: Regional Manager???
By joust on 4/27/2007 5:08:37 PM , Rating: 5
Most likely he was an officer of the company and had power, in the company's name, to handle day-to-day decisions. Of course, I don't think taking on $5 million in loans exactly fits that definition, but in China corruption is so rampant I don't think people would call him out on it.


RE: Regional Manager???
By Puddleglum1 on 4/27/07, Rating: 0
RE: Regional Manager???
By masher2 (blog) on 4/27/2007 6:17:34 PM , Rating: 5
> "Just because the country is 3rd world...doesn't mean that the stereotype of corruption applies."

Corruption is fairly rampant in China. According to the TI 2006 World Corruption Survey, China received a 3.3 score, tying it with Ghana and Senegal, and putting it below (worse than) nations like Belize, Lebanon, Jamaica, Columbia, and Namibia.


RE: Regional Manager???
By JamRockaz on 4/27/07, Rating: 0
RE: Regional Manager???
By kmiller1700 on 4/29/2007 1:18:44 AM , Rating: 2
ey, ey, you fail


RE: Regional Manager???
By alifbaa on 4/27/2007 6:27:34 PM , Rating: 5
I'm sorry, but I have to disagree with every point you made.

First, China isn't the third world in a failed state sort of way, but they certainly aren't in the developed world either. Their literacy rate is in the toilet. Their per capita GDP is obismal. While things like home ownership and western automobiles are more common today than 10 years ago, they are still the exclusive domain of the mega-wealthy in China. Fewer than 2 million of the 1.7 billion people in the country earn more than $20K/year.

Second, as to your allusion of the "corruption stereotype" being racially or economically based, I believe a better familiarity of the facts of Chinas economy would do you some good. Corruption runs rampant throughout the both the public and private sectors all over China. You cannot get anywhere in Chinese business without patting the right person's back or hiring their nephew. Anyone who has ever done business in China knows that.

Finally, as for China's employment of Democratic Justice, I don't have any idea what planet you've been on for the last 25 years. Have you ever heard of Tienanmen Square? You want something more recent? How about the Falun Gong? How about Tibet? How about Chinese Muslims? How about forced abortions for politically undesirable families who already have 1 child? How about all the flourishing Democracy and public voice of Hong Kong and Macao? What about their support for Sudan's oppression in Darfur?

It's very nice that you managed to find some European press report of how wonderful the Chinese government is. I would urge you to not believe everything you read. Try squaring it with reality first by comparing it to common sense and taking a look at the facts. Sure, China may be playing nice in some areas. They always do... so long as it doesn't affect their true goals. In fact, your article is a great example of this. When it is convenient to the Chinese, they jail entrepreneurs. When they want to grow, and a few of their politicians have generated a bit of wealth privately, they announce that private property is now... private. Wow!!! Look at the progress!!!

I look forward to China's continued growth. It is good for us all. What I most look forward to though, is a China that finally decides to value its citizens and takes its place at the adult table of the responsible countries of the world.


RE: Regional Manager???
By dailytecher on 4/27/2007 6:35:40 PM , Rating: 2
I think he only had one. There's corruption in China. Are you trying to start a flame war?


RE: Regional Manager???
By alifbaa on 4/27/2007 6:41:27 PM , Rating: 2
Nope. Not trying to start a flame war. It just pisses me off whenever I see someone trying to talk about how China "isn't THAT bad."

China and the Chinese people are a lot of wonderful things. Unfortunately, the Chinese government is anything but wonderful, and needs to be replaced as soon as possible. We, as intelligent, thinking, feeling, and caring Human Beings should never forget that.


RE: Regional Manager???
By Puddleglum1 on 4/27/2007 7:07:18 PM , Rating: 4
Your post was great. There were a lot of problems with the points I brought up that I understood after I read your post.

I was just focusing on the corporations in China, and how the justice system treats things like this.

When I was in China, my friend left his baggage in the back of the taxi we were using. The driver literally tracked us down after about 10 minutes had gone by, to return it to us.

Found out later that the penalty for stealing from tourists is extreme, and that he would have been in jail for the rest of his life.

China hates it when its own citizens hurt its image (i.e., what happened with Gigabyte (what does i.e. stand for?)), and I cited the url to give an example (it was written today) of how China is looking better judicially.


RE: Regional Manager???
By ira176 on 4/28/2007 4:53:00 AM , Rating: 4
i. e. prep. abbreviation for id est which is Latin for "that is" or "that is to say." It is used to expand or explain a general term as in "his children (i.e. Matthew, Mark, Luke and Joan)." It should not be confused with "e.g." which means, "for example."

According to: http://legal-dictionary.thefreedictionary.com/i+e


RE: Regional Manager???
By Lord Evermore on 4/29/2007 8:01:30 PM , Rating: 2
So, you think it's a fair judicial system that would have jailed a man for life if he had just returned the luggage to his dispatch center where the customer would be able to pick it up like they would in countries like the US?

The fact that they harshly punish people who make the country look bad is NOT a sign that it's got a progressive judicial system or one that is fair to the citizens or even serves them in the long run. That's called a smoke screen. Make things look good in public, but privately be evil.


RE: Regional Manager???
By fayer on 4/27/2007 9:07:14 PM , Rating: 1
quote:
I would urge you to not believe everything you read.


thats exactly what i want to say to you.


RE: Regional Manager???
By alifbaa on 4/27/2007 9:34:44 PM , Rating: 2
In reference to what?


RE: Regional Manager???
By Jaylllo on 4/28/2007 1:16:52 AM , Rating: 4
Honestly, how is having pet projects for your state to support your constituants any different from flat out nepotism? There is about one very translucent layer of abstraction there.

Not to gloss any of China's problems, but it is well known that China is public enemy #3.5. A lot of American papers give biased articles to push their agendas.
Newspapers are not required to give unbias, totally factual stories.
Check google news and maybe read 10 articles, with 6 or so being outside the US.
Very very different paradigm. Try it, it might scare you.

People in power abuse power, there won't be any change until there is full accountability.


RE: Regional Manager???
By masher2 (blog) on 4/28/2007 9:31:27 AM , Rating: 3
> "Honestly, how is having pet projects for your state to support your constituants any different from flat out nepotism?"

There's a huge difference; the two aren't even comparable. A pork project is an example of a politician putting the interests of his constituents ahead of those of the entire nation. Like it or not, that's his job. It's the entire reason we elect officials from geographical regions as opposed to from the nation at large...so they can represent and advance those local interests. Pork projects are only a problem because other politicians allow them to proceed, usually due to vote-trading or other deals.

Corruption, however, is a politician putting his own personal interests ahead of those of his constituents. Its a totally different ballgame...and a far more damaging one.


RE: Regional Manager???
By littlejim68 on 4/28/2007 6:47:21 PM , Rating: 2
Very well said. It is rare that people understand this.


RE: Regional Manager???
By Martin Blank on 4/28/2007 7:02:34 PM , Rating: 2
quote:
A pork project is an example of a politician putting the interests of his constituents ahead of those of the entire nation. Like it or not, that's his job. It's the entire reason we elect officials from geographical regions as opposed to from the nation at large...so they can represent and advance those local interests.

Actually, his job is, as you nearly stated correctly later, to represent the people from the state (in the case of Senators) or local district (in the case of Congresspersons and local legislators) and ensure that their viewpoints or at least what is believed to be in their best interests* are heard and factored into legislation. This does not necessarily mean funneling money locally just to make jobs; that is merely used as a campaigning tool to pick up votes for the next election.

* There are two basic viewpoints on why an elected person is in place, and this is to either represent the viewpoints of the electorate (meaning relying on local input and some polling), or to represent what is believed to be in the best interests of the area (based on what is believed to be a more complete picture of things, even if it is opposed by the electorate). Pork -- passed or not -- is neither of these, but rather simply pandering to the voters.


RE: Regional Manager???
By AntDX316 on 4/28/2007 12:40:14 AM , Rating: 2
greed can ruin anyone

greed in gambling in the casino
greed in trying to change peoples minds
greed in game shows such as deal or no deal
greed in seriouso overclocking
greed overall is pushing ur limits in order to gain abit or alot more than what u already have = my definition


RE: Regional Manager???
By Dactyl on 4/28/2007 8:29:59 PM , Rating: 2
greed overall is pushing ur limits in order to gain abit or alot more than what u already have = my definition

And the worst of all are Olympic Athletes. Those mofos are the greediest people on earth.


RE: Regional Manager???
By Lord Evermore on 4/29/2007 8:19:45 PM , Rating: 2
Your definition is wrong. Period.

Greed is not defined by wanting more than you have. Starving Ethiopians certainly aren't greedy because they'd like to have some bread.

Greed is excessive desire for more than you have, more than you need, or more than you deserve. In particular, desire for more than you need or deserve at the expense of others getting a minimum of what they need or deserve.

What you deserve is what you have worked for. If you work harder, you deserve more. If you push your own limits, that's a personal choice, and doesn't negate the fact of having done the hard work. Someone who finds a task difficult and has to push to complete it deserves no more or less reward than someone else who finds the task easy (though they may be due praise for the effort it took).

Gambling doesn't automatically mean greed. Excessive gambling does. I don't even know what greed in changing people's minds means, other than being able to gain power. Nothing wrong with that except when you are gaining power for the sake of having power and control. Deal or No Deal is just dumb, but not greed. Somebody offers you cash for no real work, you'd turn it down? Serious overclocking is greedy? So light overclocking isn't? It's greedy to put time, money and effort into working your property to its limits so that you can get the best performance possible?

I assume you're young and naïve.


RE: Regional Manager???
By PandaBear on 5/2/2007 1:04:39 PM , Rating: 2
Mr. secret police from China, please stop trying to pretend you are employed by a saint. China's corruption problem is well known and I am sure you are too.


RE: Regional Manager???
By Pooua on 5/3/2007 1:27:40 AM , Rating: 2
I read a lot of financial news, to help me make investing decisions. I learned through that news that corruption in China is a big problem, even in the highest levels of business. In particular, the Chinese stock market is hugely corrupt. This point was made in the financial press after the brief world-wide stock retreat a few months ago.

A quick Google pulls up plenty of articles on Chinese financial corruption:

"Wave of Corruption Tarnishes China's
Extraordinary Growth," By David Barboza. New York Times
March 22, 2005.
http://www.globalpolicy.org/nations/launder/region...

"Millions of Chinese seek stocks amid 'blind optimism'," By David Barboza. IHT February 16, 2007.
http://www.iht.com/articles/2007/02/16/business/st...

"Only the bravest of bankers boldly go into China," By Paul Wiseman. USA TODAY January 19, 2006.
http://www.usatoday.com/money/markets/world/2006-0...


RE: Regional Manager???
By alifbaa on 4/27/2007 6:36:29 PM , Rating: 2
China's banking and finance system is not nearly as developed as ours is. Right now, Chinese banks are fairly awash in cash and are dying to give money away any way they can. Add to that a well dressed, wealthy official who knows someone important at the institution, and he can probably get whatever he wants.

In China, deals are based much more on who you know than what exactly you are proposing. If you are not a foreigner and deliver a well polished proposal that seems to make sense and you give the proper kick-backs, you can pretty much get whatever you want.

In fact, the better you know the person you are dealing with, the more they will feel obliged to accept your proposal since rejecting you is seen as dishonoring and showing disrespect. Chinese culture, much like a lot of Asian cultures, teaches that this is to be avoided at all costs.

In almost every case, such teaching leads to a wonderful society which I really envy and have learned a lot from. It can make for bad business though. It's the same trait that led to the Japanese economic collapse of a few years ago. One of the things I've seen a lot of over the last few years is how much more willing Japanese businesses are to tell each other "no" without fearing they would offend someone.


RE: Regional Manager???
By encryptkeeper on 4/30/2007 10:46:01 AM , Rating: 2
He obviously had the authority the BANK needed to make this loan. He's the one who's supposed to be in charge to make sure this doesn't happen with people lower on the corporate ladder. It's a case of who watches the watchers.


Not good for Chang
By paydirt on 4/27/2007 4:51:54 PM , Rating: 2
Unlike the U.S., committing fraud in China leads more often to a death sentence... Depending on the specifics, Chang could be in deep doo doo




RE: Not good for Chang
By joust on 4/27/2007 5:04:58 PM , Rating: 3
What you say is theoretically true. However, in practice, in the overwhelming preponderance cases, justice is not brought to fraudsters. The Chinese state has had systematic corruption for a long time.

A man with $5 million will certainly have plenty of money to bribe government officials. A couple hundred grand here and there is all it takes. So long as Chang doesn't piss off the wrong government official, he should be fine.

Crime and corruption run hand-in-hand with one another.


RE: Not good for Chang
By Lord Evermore on 4/29/2007 8:22:37 PM , Rating: 2
The loan was paid to a 3rd-party. Chang might have gotten some of it but not the entire 5 million.


RE: Not good for Chang
By alifbaa on 4/27/2007 6:47:14 PM , Rating: 4
The Chinese government only kills murderers, people who embarrass or oppose the government in a particularly public way, and high ranking government officials the government doesn't want around any more and wants to make an example of.

This guy will live. His punishment, if any, will likely be no more severe than it would be if he were in the US... Except he probably won't have cable TV in his cell!


Funny
By chick0n on 4/28/07, Rating: -1
RE: Funny
By INeedCache on 4/28/2007 3:49:19 AM , Rating: 3
Corruption is rampant in the U.S. The main difference between us and most others is that our people still lie and maintain they're honest and doing things in your best interest.


RE: Funny
By Lord Evermore on 4/29/2007 8:25:11 PM , Rating: 2
The Chinese government doesn't do that?


RE: Funny
By greenchasch on 4/28/2007 9:35:48 AM , Rating: 2
quote:
people always said *China is full of corruptions*, but failed to realize that even our *wonderful* US aint that much better
Thus speaks a youth whose never been to China, or any other country where corruption is rampant.


RE: Funny
By Larrymon2000 on 4/28/2007 12:14:00 PM , Rating: 2
I agree. The level of corruption there and the level of corruption here cannot be compared. Here, Enron sparked millions of outcries in newspapers and magazines around the world. It shocked the stock market and lowered people's trust in corporations. It launched investigations, reports and movies and documentaries. In China, things like this would certainly not generate the same type of outrage.


RE: Funny
By Dactyl on 4/28/2007 8:34:59 PM , Rating: 2
Jewish controlled media companies are to blame for China's bad press?

Why would Jews hate China?

If Jews control the media, why can't we get better press for Israel and George Bush and the war in Iraq?

How come Arabs and Muslims get such good treatment in the press?

Our media tiptoes around that issue like a battered wife. It's afraid to report anything that makes Muslims look bad and always goes out of its way to balance those reports with stories about how swell Muslims are or how it's just a tiny, tiny minority that does bad things.

Only an idiot or a racist could watch our media and think it's controlled by Jews.


RE: Funny
By bloosteak on 4/28/2007 10:59:27 PM , Rating: 3
Uh, American media is 100% positive in regards to Israel. And usually negative toward China. I was in China around 2 years ago. I don't see why the average American has to be so ignorant about foreign affairs. WAY too much stereotyping and generalizing.


RE: Funny
By bloosteak on 4/28/2007 11:06:53 PM , Rating: 2
If Jews control the media, why can't we get better press for Israel and George Bush and the war in Iraq?
Have you watched any news stations anymore. There isn't a major news station here that doesn't blindly "support the president".

How come Arabs and Muslims get such good treatment in the press?

What? lol

Our media tiptoes around that issue like a battered wife. It's afraid to report anything that makes Muslims look bad and always goes out of its way to balance those reports with stories about how swell Muslims are or how it's just a tiny, tiny minority that does bad things.

Because it needs to be mentioned cause there are a LOT of ignorant people out there? And because it IS a minuscule minority that does those things. You're more likely to be struck by lightning than to die from a terrorist attack.


RE: Funny
By Christopher1 on 4/29/2007 2:02:43 AM , Rating: 2
Quite true about the terrorist thing. You are MUCH more likely to be struck by lightening than to die in a terrorist attack, but most people want to focus on the somewhat 'preventable' terrorist attack than the lightning strike.

You are also right in that it is a VERY small minority of Muslims who do terrorists attacks.... however it is NOT such a small minority who SUPPORT them doing those attacks, at least until they kill someone in their own country!

The problem isn't really ignorant people. The problem is religion in general and the hatreds that spring up between people of religions and those who don't believe in any religion at all, like myself who is an atheist.

That could be solved by the religious idiots out there realizing that this time on earth is all you get, and that there is no heaven or hell or 'god' out there, but I don't see that happening anytime soon because EVERY TIME you try to bring that up with someone who has been raised with the religious idiocy since birth, they get ANGRY at you and will sometimes physically attack you!


RE: Funny
By rdeegvainl on 5/1/2007 12:48:34 PM , Rating: 2
I'm sorry, but all i got out of the second half of your statement is that you are atheist, and that people who have religion are closeminded and hate anyone who believes different from them. Unfortunately you are saying that your way is correct and that all others need to conform to your ideas to fix the problem. In your defense of the muslim religion you say that it is a SMALL MINORITY, but when you attack religion there isn't one bit of open mindedness in your arguement.
Here is a parallel to your arguement that "religious idiots" always get angry when you say that they need to realize that god doesn't exist and there is no heaven or hell.
Everytime you tell an athiest idiot that there is a heaven and hell and god does exist, they get angry at you and will sometimes physically attack you.
The problem here isn't religion or beliefs, it is intolerances among those who beleive anything, from atheism to christianity and wiccanism (is that a word)
I have no issue with atheists, or "Religious idiots from birth", I do however have a problem with anyone, and I mean anyone, saying others NEED to believe as they do.
You are being an intollerant person spouting out intollerance of other peoples religions that differ from yours.
A religion is a set of beliefs and practices generally held by a community. Atheism is a religion also.


RE: Funny
By PandaBear on 5/2/2007 1:34:48 PM , Rating: 2
Lightning is much more preventable than a terrorist attack, just stay away from open area.

Although I am religious, I do agree with your comment about religious idiots who did crazy things in all religion (christians included, like those abortion doctors killers).


RE: Funny
By UserDoesNotExist on 4/29/2007 12:41:59 AM , Rating: 2
To those disagreeing with Dactyl:

The media is not 100% behind Israel. Just look at how many times you see pictures of armed Israeli guards busting down a door and Palestinian mothers crying over their dead children. Quite a bit. Now look at how many times you see pictures of crying Israelis whose families have been bombed by Palestinians or pictures of Palestinian militias. Not so much. I've found that the front-page pictures in a newspaper tends to be the best indicator of the political leanings of the editor. Pictures have a powerful impact, and people reading a newspaper usually aren't looking at bias in the selection of pictures, which leads to pictures being an excellent way to influence your audience without making them realize it. Ditto for movies, but that's an entirely different discussion.

As for the Muslim thing, it is not the responsibility of the newspaper to report how great Muslims are, which is entirely subjective whereas responsible journalism strives for objectivity. That might be suitable for an editorial, but not for the main news section. Presenting such things as facts is a form of propaganda, just like running supposedly factual articles about how all Muslims want to eat Christian babies is propaganda. Two different sides of the same coin. It is also not the responsibility of the media to try to "balance" the news of its own accord, for the same reason. This is a subtle form of population brainwashing. It's no accident that governments in totalitarian regimes always take over the media immediately (usually before they're even in power): being able to filter the news through your own political bias is the most powerful form of brainwashing there is, and it is the responsibility of democratic journalists to try to avoid this filtering of the news as much as possible.

Finally, this reminds me of the media coverage surrounding the incident that happened in Minneapolis. Basically, a bunch of imams tried to act like terrorists so that they would be apprehended by airport security and be able to file complaints of discrimination. Doing things like shouting phrases used by terrorists in the middle of a crowded area, talking loudly about how America deserves to suffer for the hanging of Saddam, sitting in seats near the exits that weren't assigned to them and refusing to leave them, and requesting heavily reinforced seat beat extensions and laying them besides their feet. This was only reported in the press near Minneapolis at first and slowly trickled out from there via word of mouth. I remember reading an old copy of the Star Tribune at a Starbuck's and being shocked that I hadn't heard of it before. I lived in Fargo, only 4 hours away, and this was mentioned nowhere in that day's Forum. Yes, we do have a newspaper in Fargo, hahaha, very funny. Nor was it mentioned in the Times or the Journal. You'd think this would be a pretty newsworthy item everywhere, especially since at the time it appeared that they were terrorists attempting to hijack the plane. Also, Lord knows how much the media loves to give any publicity chaser *cough*jackthompson*cough* their 15 seconds in the spotlight. But not this one, for some strange reason.

*Total Aside* I hate Bill O'Reilly. I know this has nothing to do with the topic, but I've had a hard day and I feel the need to vent, hence the already bloated size of this post. That man is not a conservative! Just read his first book, it's class warfare at its finest. He does twist it into some pseudo-conservative slant, but a half-lie is the most dangerous lie of all.


RE: Funny
By GoVNN on 4/29/2007 4:57:01 PM , Rating: 2
The fact that the entire mass media is owned by Jews is hardly debatable. Internets - thanks.
http://realnews247.com/who_rules_america_updated_2...


RE: Funny
By Lord Evermore on 4/29/2007 8:29:49 PM , Rating: 2
HA HA.


RE: Funny
By ceman on 4/30/2007 1:26:44 PM , Rating: 2
Wow what a scary website. No advertising on any of the pages? http://realnews247.com Check out the front page and consider the source... GoVNN (pause) are you a facist anti-semite?


RE: Funny
By GoVNN on 4/30/2007 1:54:09 PM , Rating: 2
That website isn't the source. The source is reality. Try Google if you want to challenge the data, but like I said - the FACT of jewish media control is not debatable. That's what that word "fact" means.


RE: Funny
By bldckstark on 5/4/2007 8:24:06 PM , Rating: 2
Wow, what a site. I searched Minnesota Imam and got no results. I searched google with the same phrase and got 195,000 hits. Talk about censorship. Do these guys work for Yahoo?


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