IS FUJI XEROX BRIBING CHINESE OFFICIALS ?

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Date: Tuesday January 24, 2006 10:11:00 am
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    Video allegedly of Fuji Xerox officials bribing Chinese arbitrator posted online
    Shanghai.  January  2006-CHINA – A video clip allegedly showing Fuji Xerox officials attempting to bribe a Chinese arbitrator presiding over an arbitration case filed against the Japanese firm was posted on Chinese news portal Sina
    Fuji Xerox officials were not immediately available for comment on the video.
    An unidentified publishing house based in the northern Chinese municipality of Tianjin filed for arbitration against Fuji Xerox in August of 2003 on charges the Japanese firm sold it faulty digital printers in a deal worth RMB 2.5 mln (USD 0.3 mln). The publishing house asked that Fuji Xerox refund it for the purchase. However, the arbitration commission ruled in November last year that Fuji Xerox (China) should only pay the publishing house RMB 102,442 (USD 12,805). The Tianjin-based publishing house, citing a video made by some of its employees as evidence, is now charging that Fuji Xerox (China) officials bribed one of the arbitrators on the commission.
    The publishing house gave copies of the video, purportedly made on July 6, 2005, to Sina.com and Chinese newspaper China Business News. The video allegedly shows Chen Zhenwei, a Fuji Xerox (China) legal official, and the company’s corporate lawyer Zhang Decai having dinner with an arbitrator surnamed Qi.
    “So far, we have received no information about the video,” an official with the Tianjin Arbitration Commission, surnamed Yang, told Interfax. “I’ll report the video to senior officials and they will decide whether we need to re-arbitrate the case. Arbitrators are definitely not allowed to have personal meetings with parties involved in cases.”
    In July of last year, the case between Fuji Xerox and the publishing house was ongoing and Qi was a member of the arbitration commission presiding over the case. The publishing house is arguing that the Fuji Xerox officials should not have been having dinner with Qi while the case was ongoing. However, the video, which is only 25 seconds in length, shows litte more than a brief glimpse of a private dinning room at a restaurant and the faces of three individuals.
    An official with the publishing house said that he felt the arbitrators’ attitudes changed obviously after the dinner, which allegedly took place in July of last year, China Business News reported.
    In addition, the paper quoted Zhang, Fuji Xerox’s lawyer, and the arbitrator surnamed Qi as saying that the dinner took place because Qi was leaving his position as an arbitrator on the commission overseeing the case between Fuji Xerox and the publishing house.
    The publishing house signed a RMB 2.5 mln (USD 0.3 mln) deal with Fuji Xerox (Shanghai) in late 1999 to purchase digital printers. However, the printers needed to be repaired 166 times from March to September 2003, the publishing house alleged. The publishing house applied to the Tianjin Arbitration Commission in August 2003 for Fuji Xerox to refund money paid for the printers. The commission ruled that Fuji Xerox should pay RMB 102,442 (USD 12,805) to the publishing house in November of last year.
    Meanwhile, in addition to this case in Tianjin, a number of Chinese media reported in January this year that Fuji Photo Film had been smuggling film and photo-paper into the Chinese market through one of its local partners in the Guangxi Autonomous Region. The Chinese government has yet to take any official action in the case. Fuji officials, moreover, have strongly denied the reports.

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