One of China's biggest game publishers at the center of bribery allegations
China Mobile Games and Entertainment Group, one of the biggest game publishers in China, has many investor eyes on it this week, with multiple executive layoffs and allegations of bribery.
The company, which publishes and develops mobile titles for China, removed nine executives from their positions earlier this week, including the company president Shuling Ying.
In a statement, CMGE management said that its rapid growth had created "operational challenges" and inefficiencies that needed addressing, and removing these executives would allow this to happen.
However, rumors quickly began to surface
that these nine executives were removed because of bribery charges related to investment in an external game publisher. CMGE refused to comment, stating that it was investigating the matter.
Now the company has released a statement, rejecting the allegations, and reiterating that the purpose of the restructuring was to streamline the company.
"To the best of the Company's knowledge, the Company is currently unaware of any evidence of bribery," reads the statement, adding, "Nevertheless, in order to provide the highest level of transparency to its shareholders, the independent committee has been formed to look into and address the market speculations circulating in the market."
An external law firm has been brought in to assist the investigation.