Print 47 comment(s) - last by bldckstark.. on May 4 at 8:24 PM

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.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

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!

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
Related Articles
Gigabyte Calls It Quits on ASUS Alliance
March 25, 2007, 10:47 AM

Most Popular ArticlesTop 5 Smart Watches
July 21, 2016, 11:48 PM
Free Windows 10 offer ends July 29th, 2016: 10 Reasons to Upgrade Immediately
July 22, 2016, 9:19 PM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki