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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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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 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:

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
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 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 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
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 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.

"Millions of Chinese seek stocks amid 'blind optimism'," By David Barboza. IHT February 16, 2007.

"Only the bravest of bankers boldly go into China," By Paul Wiseman. USA TODAY January 19, 2006.

"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
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