Former manager with Alibaba Group detained on bribery suspicions

The former manager had been removed from his post earlier this year in March because of alleged misconduct

Chinese e-commerce giant Alibaba Group said on Thursday a former general manager in charge of its group-buying website had been detained by local police on suspicions of accepting bribes.

Police in the Chinese city of Hangzhou, where Alibaba Group is headquartered, are currently investigating Yan Limin, the company said in a posting.

In March, Yan had been removed from his position at the group buying site called Juhuasuan, allegedly because of "professional misconduct" and transferred to another department, according to Alibaba.

Alibaba Group, which operates two of China's largest e-commerce sites, Taobao Mall and Taobao Marketplace, has had cases of alleged corruption by employees in the past. The biggest occurred last year with an investigation that identified fraudulent transactions involving 2,326 suppliers in the company's Alibaba.com business.

100 sales people, along with supervisors and sales managers, had allowed the fraud to initially evade the company's detection. Both the CEO and COO of Alibaba.com resigned as a result.

Alibaba said in a statement it would not tolerate any misconduct within the company, and wanted to be transparent with customers and vendors whenever incidents of this nature were found.

"We noted a handful of isolated situations over the past 18 months, that once detected were acted upon swiftly, and in many cases resulted in consultation with the authorities for follow up," the company added.

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Michael Kan

IDG News Service
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