DJI Faces Up to $150M Loss After Discovering Internal Corruption
Drone giant DJI uncovers widespread internal corruption involving inflated parts costs, potentially costing the company $150 million in 2018.
DJI, the world's largest consumer drone manufacturer, reveals that internal corruption costs the company up to $150 million in the 2018 financial year. The discovery prompts DJI to form a high-level anti-corruption task force to address the widespread issue within its ranks.
Investigations show that between 40 and 100 employees participate in the scheme, which involves inflating the costs of parts and materials for personal financial gain. DJI fires the responsible employees and hands the corruption cases over to law enforcement authorities for further legal action.
To prevent future incidents, DJI implements stronger internal controls and establishes new anonymous reporting channels for workplace violations. While the massive financial loss seems high for inflated invoices, the sheer scale of DJI's hardware manufacturing means a few well-placed individuals easily siphon off enormous sums of money.