Tencent Executive Accepts 700,000 Yuan in Bribes: Are Large Corporations Prone to Becoming Corruption Hotspots?
[4] Compiled from: Red Star News
Case review
In early February of this year, Tencent's Anti-Fraud Investigation Department published a list of 22 typical cases involving personnel who violated the "Tencent High Voltage Line" within the group from the fourth quarter of 2019 to the present, as well as a list of 37 external companies involved in the cases.
One of the notices stated that Zhao Mouwei, assistant general manager of the Mobile Commercial Products Department of PCG, took advantage of his position to seek benefits for a supplier, accepted kickbacks from the supplier, and repeatedly accepted domestic and overseas travel arranged and funded by the supplier. His actions violated the “Tencent High Voltage Line” and he has been dismissed by the company. Meanwhile, Zhao Mouwei was transferred to public security authorities for handling due to suspected crimes. However, specific details and amounts were not disclosed.
Public information shows that the PCG Business Group was established in 2018 and is responsible for the integrated development of the company’s internet platforms and content culture ecosystem, including the integration of social platforms such as QQ and Qzone, traffic platforms such as Yingbao and the browser, as well as content businesses such as news and information, video, sports, live streaming, animation, and film, promoting cross-platform and multi-format IP development and creating massive, high-quality digital content experiences for more users.
On November 4, the Beijing Court Trial Information Network published for the first time both the first-instance criminal judgment and the second-instance criminal ruling for this case.
According to the first-instance judgment, upon trial, it was ascertained that between April 2017 and July 2018, the defendant Zhao Mouwei held a position at the Mobile Commercial Products Center of Tencent Technology (Shenzhen) Co., Ltd. (hereinafter referred to as “Tencent”). Taking advantage of his position responsible for the commercialization of advertising on Yingyongbao, during the course of business cooperation with Beijing Wanxiang Xindong Mobile Technology Co., Ltd. (hereinafter referred to as “Beijing Wanxiang”), he sought benefits for Beijing Wanxiang and accepted, free of charge, travel services paid for by Yi Mouchuan, then General Manager of Beijing Wanxiang. It was ascertained that the aforementioned travel expenses totaled RMB 730,210.
[1] Court Opinion
In the first instance, the court sentenced the defendant Zhao Mouwei for the crime of accepting bribes by a non-state functionary to one year and two months in prison and a fine of 60,000 RMB.
Additionally, the defendant Yi Mouchan was sentenced for the crime of offering bribes to a non-state functionary to nine months in prison and a fine of 20,000 RMB; combined with a previously imposed sentence of three years and six months in prison and a fine of 80,000 RMB, the final sentence was four years in prison and a fine of 100,000 RMB.
The second instance upheld the original judgment.
"Criminal Law of the People's Republic of China"
Article 163
The crime of accepting bribes by a non-state functionary refers to an employee of a company, enterprise, or other unit who, taking advantage of their position, demands or illegally accepts property from others to seek benefits for them, and if the amount is relatively large, they shall be sentenced to up to three years in prison or criminal detention and fined; if the amount is huge or there are other serious circumstances, they shall be sentenced to between three and ten years in prison and fined; if the amount is especially huge or there are other especially serious circumstances, they shall be sentenced to over ten years in prison or life imprisonment and fined.
Employees of companies, enterprises, or other units who, in economic transactions, use their positions to violate state regulations by accepting various forms of kickbacks or handling fees for personal possession shall be punished according to the preceding paragraph.
Personnel engaged in public service in state-owned companies, enterprises, or other state-owned units, and personnel dispatched by state-owned companies, enterprises, or other state-owned units to non-state-owned companies, enterprises, or other units to engage in public service, who commit the acts in the preceding two paragraphs, shall be convicted and punished according to Articles 385 and 386 of this Law.
[1] The author's perspective
Internet enterprises differ from traditional enterprises in their business scope and operational mechanisms, so their internal rule-making also differs. Since internet enterprises have only emerged in the last two decades and truly risen in just a few decades, and current internet policies and development trends are vastly different from before, there are no successful models for internal regulation to follow, and they must proceed by trial and error.
Currently, the anti-corruption rules and regulations of internet enterprises mainly target two categories: first, internal senior management and employees, and second, third-party partners. However, there are two main shortcomings in current internet enterprise anti-corruption regulations: first, the content is not comprehensive or detailed, and second, they cannot fully integrate business operations to identify compliance risk points. This not only tests the capability of senior management but also reflects the professional competence of the legal team. Thus, internal anti-corruption in enterprises requires not only strict rule-making from a holistic perspective but also thorough implementation. As a key area of new development in China, the internet industry cannot afford internal management chaos; otherwise, how can it support the national economy?
