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CMGE removes nine execs amid bribe probe

Image courtesy of CMGEChina Mobile Games and Entertainment Group said Thursday it has reassigned its president and eight other executives after news about an internal bribery investigation at the firm leaked to the press.

The Hong Kong game-maker said it is "currently unaware of any evidence of bribery."

But "nevertheless, in order to provide the highest level of transparency to its shareholders, [an] independent committee has been formed to look into and address the market speculations circulating in the market," it said.

CMGE develops and publishes mobile games in China for Android and iOS-based smartphones. It has 72 games and 113 million registered users. In 2013, it reported $58 million in revenue and net income of $4.4 million.

Last Friday, without mentioning bribery or any investigation, the company announced that nine executives had been "removed" from their positions as part of an "organizational restructuring" of its publishing business.

Xiao Jian, CMGE's chief executive, said this week the executives are still employed, pending the results of the investigation.

After news of the bribery probe first surfaced last week, Nasdaq OMX Group halted trading in CMGE's shares and asked for additional information. The company's statement Thursday enabled it to keep its stock listing.


Julie DiMauro is the executive editor of FCPA Blog and can be reached here.