backtop


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

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.


"Vista runs on Atom ... It's just no one uses it". -- Intel CEO Paul Otellini

Related Articles
Gigabyte Calls It Quits on ASUS Alliance
March 25, 2007, 10:47 AM













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki