Top executives at Huawei, including its three rotating CEOs and founder Ren Zhengfei (pictured), are set to pay self-imposed fines totalling CNY3 million ($468,774) for mismanagement of quality issues, Reuters reported.

A leaked internal memo from the Shenzhen-headquartered vendor said the sum related to “quality breach and business falsification” but did not concern a specific event. It also did not reveal which business units the issues relate to, only noting it referred to “some units” and events over recent years.

In a statement made to Reuters, Huawei said the fine had been issued by Zhengfei to “encourage the management team to reflect on past management and decision-making gaps”. It also revealed the incidents were discovered during an internal audit.

Zhengfei will pay CNY1 million, rotating CEOs Guo Ping, Eric Xu and Ken Hu and HR president Jason Li are set to pay CNY500,000 each.

US blow
The news comes at the end of an eventful week for Huawei, which saw US politicians call for increased scrutiny of the Chinese company’s business practices and crank up pressure on operators to cut ties.

The developments followed shortly after Huawei’s failure to secure a channel partnership with AT&T, which was widely expected to be unveiled at CES. Despite the blow, the company’s head of consumer business Richard Yu reiterated the Chinese vendor’s determination to make a success of its US business.