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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: 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.


"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer

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