WPP's Scandal Unleashed: High-Ranking Executive Detained in China for Shocking Bribery Scheme
WPP terminates executive held in China over bribery allegations; advertising giant takes swift action following the detention of the individual
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WPP, the advertising giant, has terminated the employment of an executive who was detained in China under suspicion of bribery.
Last week, it was reported that the Shanghai office of advertising agency GroupM, which is owned by WPP, was raided by the Chinese police.
On Tuesday, CNN was informed by the British company that they are collaborating with the authorities and conducting their own investigation with the assistance of an independent third party.
WPP stated that it is terminating the employment of the executives and suspending trade with any external organization involved in the police inquiries. However, the company declined to disclose more information due to an ongoing police investigation.
WPP said Tuesday it had fired an executive detained in China on suspicion of bribery.
WPP/Reuters
Shanghai police announced on Saturday that they have apprehended a high-ranking executive from an advertising agency, alongside two other individuals. According to initial investigations, these individuals are suspected of accepting bribes between 2019 and February 2023, as stated by the authorities. Although the police did not disclose the specific company involved, both the Financial Times and Chinese state media have connected it to GroupM.
The news of China arresting a Japanese national who allegedly worked for drugmaker Astellas Pharma came shortly after Japanese officials announced last week. This individual had been previously detained on suspicion of violating both the country's criminal law and anti-espionage law.
Chinese state media reported on Sunday that authorities in China are investigating Taiwanese electronics manufacturer Foxconn for land use and tax concerns.
Terry Gou, Foxconn founder announces bid for Taiwan presidency during a press event in Taipei, Taiwan August 28, 2023.
Ann Wang/Reuters/File
Apple iPhone maker Foxconn being investigated in China as founder runs for Taiwan presidency
Weeks ago, Terry Gou, the founder of Foxconn, declared his candidacy for the presidency of Taiwan and assured the public that he would not succumb to pressure from Beijing, even though he has had longstanding business connections with China.
Although it remains uncertain if the investigations are related to Gou's political aspirations, experts have cautioned that these developments could exacerbate concerns among foreign businesses operating in China.
In July, China expanded its extensive counter-espionage law, which analysts cautioned could pose additional legal risks and uncertainties for foreign businesses, journalists, and academics.
During that month, Mintz Group, a US corporate due diligence firm, was fined approximately $1.5 million by China for purportedly carrying out unauthorized statistical work in the country. Earlier in March, Chinese officials had shut down the firm's Beijing office and detained five of its local employees.
State security authorities announced in May that they had conducted raids on multiple offices of Capvision, an advisory network. This action followed a month-long investigation by the police, who had questioned the employees at the Shanghai office of the prominent consultancy firm, Bain.
