BYD set off an anti-corruption storm! Pull out the production foreman and play mahjong with the supplier staff

BYD set off an anti-corruption storm. In 2021, 28 suppliers were held accountable by the company for violating the integrity cooperation agreement. At the same time, the company investigated and punished 94 employees who were unclean and seriously violated the law; transferred to the public security organs to file and investigate 7 cases and 22 people, and pursued criminal responsibility according to law.

"We regularly publish relevant content every year, and send a summary at the end of the year, I don't know why this time the attention is so high." BYD's internal employees said this in an interview with the first financial reporter today.

Recently, BYD issued a "Letter to BYD Partners", which pointed out that the Spring Festival is approaching, and some partners may send red envelopes, send gifts or invite to participate in activities such as dinners and parties to BYD's relevant business personnel in the name of "festival" and "New Year's Greeting", but according to BYD regulations, employees should refuse gifts from personnel of foreign units, and may not accept various activities such as hospitality and eating invitations from personnel of foreign units without authorization. Whether the gift has been rejected, returned or handed over after receiving it, the employee must file with the company within three working days through the OA anti-corruption filing process.

BYD said that in 2021, a total of 28 suppliers were held accountable by BYD for breach of the relevant agreements on integrity cooperation. The company reminds partners not to provide any undue benefits to the company's employees. Otherwise, BYD will pursue the liability of the donating unit for breach of contract in accordance with the contract or integrity cooperation agreement, such as deducting liquidated damages, canceling cooperation qualifications, and being included in the blacklist of partners. Persons involved in bribery may also face penalties.

BYD also mentioned that if BYD employees make requests for money, food, entertainment activities, etc. to the other party or have other improper behavior, please report to the BYD Audit and Supervision Office in a timely manner. According to the "BYD Company Whistleblower Protection and Reward Regulations", for the foreign units involved in the case who voluntarily report to BYD, they will retain or give priority to providing cooperation opportunities and preferential treatment according to their qualifications, business nature, report content, etc.; for foreign units that have established cooperative relations, the company will continue to cooperate with them, and at the same time, the corresponding breach of contract liability for the corrupt acts they are involved in and actively reported will not be investigated.

In addition, for foreign units that voluntarily provide corrupt information that BYD does not have, BYD will be exempted from pursuing their corresponding liability for breach of contract, and at the same time provide business protection. If the investigation is true, BYD will also give the informant a reward ranging from 5,000 yuan to 10 million yuan based on the validity of the clues provided, the nature and severity of the case.

In the first quarter of 2021, BYD reported the corruption of 7 employees, which mainly included accepting kickbacks from suppliers, bribes, banquets, gifts, etc. Among them, Liao Mou, a senior mechanical engineer of the second division, accepted kickbacks from suppliers, and Duan Mou, the production foreman of the nineteenth division, played mahjong with the supplier personnel and had economic exchanges.

In the past decade, the automotive industry has continuously strengthened its anti-corruption efforts, and a number of senior executives of car companies have been investigated, and executives such as Xu Jianyi, former chairman of FAW Group, and Zhu Fushou, former general manager of Dongfeng Motor, have been dismissed. In an interview with the first financial reporter, some analysts once said that the automotive industry, especially the car giants, in sales, public relations and advertising departments are often prone to corruption and other issues because they involve huge interests.

As a private enterprise, BYD is also constantly strengthening its internal anti-corruption, especially in the period of rapid development, and it is more vigilant against corrupt behavior. In 2021, BYD's passenger car sales exceeded 730,000 units, an increase of 75.4% year-on-year; new energy vehicle sales exceeded 593,000 units, an increase of 231.6% year-on-year, ranking first in China's annual sales list of new energy passenger vehicles in 2021. At present, BYD's new energy vehicles are still in short supply, and some car owners even have a car pick-up cycle of more than half a year. In the case of hot sales of automobiles and even the emergence of "one car is difficult to find", procurement, production, sales and other links are prone to non-compliant behavior, which is considered to be one of the reasons why BYD's anti-corruption action has received great attention.

Affected by the epidemic in Xi'an, BYD's new car supply was once more tight. However, according to BYD's latest information, the company's production at the Xi'an base has basically returned to normal.