DJI said that an internal investigation found employees had inflated cost of parts and materials for certain products for personal financial gain.

Chinese drone maker DJI uncovers employee fraud costing company 150 million
Atom Tech Shorts Monday, January 21, 2019 - 17:33

A top Chinese drone maker said on Monday that it has fired some of its employees after uncovering fraud cases that could cost the company tens of millions of dollars.

DJI, the world's biggest producer of consumer drones, said in a statement that an internal investigation found employees had "inflated the cost of parts and materials for certain products for personal financial gain", CNN reported.

“We are taking steps to strengthen internal controls and have established new channels for employees to submit confidential and anonymous reports relating to any violations of the company’s workplace conduct policies. We continue to investigate the situation and are cooperating fully with law enforcement’s investigation,” DJI told Bloomberg in a response.

The incident raises questions about the financial management of one of China's best-known technology firms, which sells drones worth billions of dollars around the world each year.

The company also said that it would strengthen its internal controls and establish "new channels for employees to submit confidential and anonymous reports relating to any violations of the company's workplace conduct policies" in the aftermath of the incident.

“DJI took swift action to address this issue, dismissed a number of employees who violated company policies, and contacted law enforcement officials,” it told Engadget in a statement.

Reports put the number of employees it fired at 29 and the size of the potential losses from the fraud at $150 million.

DJI, which employs around 14,000 people, became one of China's most successful homegrown technology companies by pioneering the global market for consumer drones.

CEO Frank Wang, who founded the startup in 2006 while studying at a university in Hong Kong, was named the first "drone billionaire" by Forbes.

With its Phantom and Maciv series being the most popular and highly rated drones globally, the company has garnered nearly three-quarters of the consumer drone market, according to industry research firm Skylogic Research.

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