DJI Announces Employee Fraud Investigation

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On Monday, DJI announced an investigation that discovered some of the company’s employees had inflated the cost of parts and materials of certain products for personal financial gain.

The Chinese drone company estimates this could have cost the company up to RMB 1 billion, translating to more than $147 million. However, DJI did not incur a full-year loss in 2018, the company notes.

DJI says it took swift action to address the issue, dismissed a number of employees who violated company policies and contacted law enforcement officials.

According to a report from Reuters, citing an internal notice that spread on social media on Friday, DJI found out that some of its supply-chain workers had conducted “corrupt behavior” that led to price hikes of 20%. Reuters, which notes it could not “independently verify the contents of the document,” says the notice counted 45 fired employees.

“These actions do not represent DJI, our culture, or our 14,000 employees, who work hard every day to serve customers and develop cutting-edge technologies,” the company says in a statement. “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.”

DJI adds that it plans to continue investigating the situation and is cooperating fully with law enforcement’s investigation.

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