Sunday, March 20, 2011

Alibaba.com chief executive resigns

Chief executive of e-commerce group Alibaba.com – China's one of the largest online successes – has resigned, after an internal investigation showed sales reps ' "intentionally or negligently" allowed more than 2300 fraudsters To verified shops. David Wei and chief operating officer Elvis Lee left the tekstombrydningsfunktionen what it described as "systemic breakdown in our company culture of integrity". Its statement to the Hong Kong Stock Exchange stressed that Wei and Lee was involved offences. But it revealed it took senior management on the online marketplace at least nine months to act according to a significant increase in fraud claims against verified vendors by foreign buyers from 2009. IT added: "Although the management of our company began to withdraw from China Gold supplier customers [verified vendors] involved and take other steps to remedy the problem early in the third quarter of 2010 … our Board considered whether the problem is systemic demanded a renewed for our company's core values".

It said more than 2300 Gold suppliers, who have signed in 2009 and 2010 had involved in fraud. All their storefronts have now been closed. Around 140000 Gold suppliers as of December 2010 had platform. The statement said: "methods of perpetrators suggest that they have developed an organized and systemic attack on Alibaba.com platform for illegal gains integrity. The sites offered in general high-demand consumer electronics at very attractive prices, a low minimum order quantity and less reliable transfer payment methods. The average value per for buyers from fraudulent suppliers were less than $ 1200 (£ 740).

"Around 100 salespeople, out of a field sales force around 5,000 as well as a number of supervisors and sales managers, is directly responsible for intentionally or negligently allowing fraudsters to evade our company's approval and verification measures and systematically establish fraudulent storefronts on the international marketplace. The investigation concluded that the pursuit of short-term financial gains for any price had vitiated parts of our sales organization, run the risk of serious damage to our company's core values. "

Linda Kozlowski, spokeswoman for Alibaba.com, said it had refunded all $ 1. 7 m to buyers Jonathan Lu, chief executive of unlisted sister company TaoBao, will take on Weis position in addition to his current duties. "One of our most important values is integrity. This means the integrity of our employees and the integrity of our online marketplaces as reliable and safe places for our small business customers, "said Jack Ma, founder and non-Executive Chairman of Alibaba.

"We must send a strong message that it is unacceptable to weaken our culture and values. It saddens me to see talented people leaving the company, but David and Elvis do the honourable thing to accept full responsibility for this, and I would like to thank them for their tireless service to the company. "

Tania Brannigan Beijing


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