WPP responds to GroupM office raid, detained executive terminated
WPP has responded to reports that its Shanghai office was raided by police over the weekend.
According to Campaign Asia, Chinese Public Security Police raided the media investment company’s office just weeks after some ex-employees were detained. It’s reported that the employees – former GroupM China head of data centre, Yao Lan, former GroupM China general manager, Diana Hong and China chief investment officer, Rycan Di (who is reportedly still with the company) – were questioned before and at the raid.
The report alleges that the raid relates to possible media broker activities and how rebates are issued to agencies and employees. Its alleged this could possibly include using client funds not disclosed to clients or authorities.
In a statement given to Mumbrella today, WPP confirmed that the executive was detained on charges of bribery and that the company is cooperating with authorities and conducting its own investigation with an independent third party.
“We cannot comment on the details of an active police investigation. However, we are terminating the executive’s employment with the company, and GroupM is suspending trade with any external organisation we understand to be part of the police enquiries,” the statement reads.
“We are absolutely committed to behaving in accordance with the law and our own code of conduct, and will take all necessary action to ensure this is the case within our business.”
