Chinese authorities expand media rebate corruption probe across agencies

Dentsu Media China CEO Tommy Li has stepped down from his role while former Wavemaker chief client officer Julep Lin was arrested, following a wider police investigation into media rebate corruption in China, MARKETING-INTERACTIVE understands.

It was understood that the Chinese police interviewed around 30 individuals across media agencies in China earlier this month, as part of an effort to clamp down on commercial bribery across the industry. 

According to an internal memo seen by MARKETING-INTERACTIVE, Guang Cui, CEO of dentsu China said the company has initiated an internal independent investigation regarding the relevant allegations to ensure objective and fair verification of the facts. The company has also proactively contacted the police and will fully cooperate with any future investigation.

“We can confirm that this matter relates solely to the personal conduct of the former employee and is not connected to our ongoing business operations, client partnerships or current employees. All cooperation projects are progressing as normal.”

“We remain committed to operating in full compliance with applicable laws and regulations in China, and with our internal code of conduct. We take a strict stance toward any inappropriate behaviour,” said the statement.

Meanwhile, Lip was understood to have left Wavemaker China in August last year in connection with the investigation. In a statement sent to MARKETING-INTERACTIVE, a WPP Media spokesperson said when the allegations first came to light in 2023, the agency took immediate action to strengthen the implementation of its business controls, oversight and transparency in China.

“This included appointing new leadership and a chief investment governance officer. We are committed to upholding the highest ethical standards in line with our code of conduct and maintaining a culture of integrity throughout the business.”

“It would be inappropriate to comment further on an ongoing cross-industry investigation. We defer all questions to the relevant authorities.”

Don't miss: GroupM China's CEO Patrick Xu steps down after 10 years

The Chinese government’s probe into media rebate corruption began with GroupM in 2023, with the authorities confirming that a senior executive and two former employees had been detained in a commercial bribery case.

Shortly after the news broke, GroupM China’s country manager and CEO Patrick Xu stepped down after 10 years with the company. GroupM's parent company WPP said it was cooperating with the authorities and conducting its internal investigation with an independent third party.

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