Retailing, Franchising, and Consumerism Business Intelligence in China

McDonald's Executive Arrested For Taking Bribes In Hong Kong

A McDonald's executive in Hong Kong has figured out that the best way to ensure a transparent supply chain is to have food suppliers pay him money in order for the fast food company to use their food products.

According to the Ming Pao Daily News, the Big Mac's managing director in Hong Kong Joseph Lau has been arrested by Hong Kong's Independent Commission Against Corruption for taking bribes from food suppliers and then using their products. Other media however say the fast food company reports Lau is on leave.

If convicted of taking bribes while working at McDonald's, Lau faces up seven years in prison and a HK$500,000 fine.

One year ago, ICAC received reports from hotpot and hotel outlets that there was vast bribery within the industry. ICAC began to take action on August 6 and arrested 27 people, including a regional general manager of hotpot outlet Little Sheep, and 14 chefs and employees of other hotels. These people are said to receive benefits, including money and free entertainment service, from food suppliers as a condition to accept their food.

Set up in 1974, Hong Kong's Independent Commission Against Corruption has adopted a three-pronged approach of investigation, prevention and education to fight corruption.

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