Scandal ridden Foxconn continues to grab the headlines for all the wrong reasons with the latest incident involving theft of 5,700 units of iPhones by company’s former senior manager who faces 10 years prison time.
The manager who has been identified by his family name Tsai worked for Taiwan’s technology giant in the testing department and during 2013 and 2014 he stole and sold a whopping $1.56 million worth of iPhone 5 and iPhone 5S. He wasn’t alone in this scandal as according to the indictment he instructed eight employees at Foxconn’s factory in the southern mainland Chinese city of Shenzhen to smuggle out about thousands of iPhone 5 and iPhone 5s.
The phones were actually testing iPhones and as per the policy these phones have to be scrapped which Tsai and his accomplices didn’t do and instead they smuggled these iPhones out of the factory and sold them to make nearly TWD 50 million ($1.56 million) from 2013 to 2014.
The case was reported by Foxconn to the Taiwanese authorities following an internal audit and Tsai was questioned after he returned to the island earlier this year and was released on bail. Tsai was charged with breach of trust and faces a maximum 10-year jail term according to prosecutors.
This is not the first time that Foxconn has been embroiled in a scandal. Back in 2014, five former Foxconn employees were charged with breach of trust in Taiwan for allegedly soliciting TWD 160 million in kickbacks from suppliers in exchange for clearing quality checks and buying their equipment. These employees were sentenced to up to 10 years and six months in prison by a district court in Taipei last month.
Prior to that the company came into the limelight over labour unrest, a spate of employee suicides and the use of underage interns at its Chinese plants in recent years.