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WPP fires employees detained in China and initiates an investigation into bribery allegations

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WPP stated that the company has dismissed executives currently detained in China on suspicion of bribery and is conducting an internal investigation into the matter.
The Shanghai Police Economic Crime Investigation Department said on Saturday that three suspects from an unnamed advertising company have been criminally detained on suspicion of bribery by non public officials. According to a previous report by The Wall Street Journal, the statement refers to a current employee and two former employees of WPP's advertising procurement department, GroupM.
We are unable to comment on the details of the ongoing investigation by the police. However, we will terminate the executive's position at the company, "WPP said in a statement on Monday
WPP also stated that Qunyi will suspend business dealings with any external agencies that it understands are within the scope of police investigation.

WPP stated that the company has dismissed executives currently detained in China on suspicion of bribery and is conducting an internal investigation into the matter.
The Shanghai Police Economic Crime Investigation Department said on Saturday that three suspects from an unnamed advertising company have been criminally detained on suspicion of bribery by non public officials. According to a previous report by The Wall Street Journal, the statement refers to a current employee and two former employees of WPP's advertising procurement department, GroupM.
We are unable to comment on the details of the ongoing investigation by the police. However, we will terminate the executive's position at the company, "WPP said in a statement on Monday
WPP also stated that Qunyi will suspend business dealings with any external agencies that it understands are within the scope of police investigation.
According to a previous report by the Wall Street Journal, the executive who was still employed by WPP at the time of detention was Rycan Di. Before the authorities launched a surprise inspection of Qunyi's office in Shanghai last week, two other executives had resigned from Qunyi.
Difei did not respond to requests for comment from reporters on Monday.
WPP stated that apart from the above statement, the company has no other comments.
This detention comes as foreign companies in China are increasingly concerned about police raids, detention, preventing employees from leaving the country, and various investigations involving foreign companies. This concern is partly driven by China's latest anti espionage law enacted in July.
According to an insider, the three former WPP employees detained in China are all Chinese citizens.
In the Qunyi case, the Chinese government did not mention the crime of espionage, but described it as a commercial bribery case.
This year, Chinese authorities raided the offices of due diligence firm Mintz Group and expert network consulting firm Capvision, both of which work closely with foreign consulting firms in China.
Meisi Wisdom Group stated at the time that five Chinese citizens hired by its Beijing office were detained without notice, and the office had been closed. The company's top priority was to ensure the safety and health of its colleagues in China, and legal counsel had been hired in China. Kaisheng Rongying stated earlier this month that the company has made comprehensive improvements to its internal operating system to comply with China's national security laws.
The Chinese regulatory authorities also questioned employees of Bain&Co., a US consulting firm, and prohibited some executives working for foreign companies from leaving the mainland. Bain Company stated at the time that it was cooperating with the supervisory department.
Earlier this month, Tokyo reported that China had officially arrested a senior executive of Astellas Pharma. The executive has been detained since March. Anstailai did not comment at the time.
Qunyi is the world's largest advertising procurement company, and according to research firm Comvergence, the company purchased approximately $63.9 billion in advertising on behalf of advertisers last year. The company's customer base includes major brands such as Ford, Colgate, Coca Cola, Google, and Unilever, and is also the largest advertising buyer in the Asia Pacific region. According to data from Comvergence, the company controlled approximately $22.5 billion in advertising expenses in the Asia Pacific region last year.
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