Gigabyte Loses $5 Million in Fraud
April 27, 2007 1:57 PM
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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.
This article is over a month old, voting and posting comments is disabled
4/28/2007 3:49:19 AM
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.
4/29/2007 8:25:11 PM
The Chinese government doesn't do that?
"Vista runs on Atom ... It's just no one uses it". -- Intel CEO Paul Otellini
Gigabyte Calls It Quits on ASUS Alliance
March 25, 2007, 10:47 AM
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