Gamasutra reports that one of the biggest game publishers in China, China Mobile Games and Entertainment Group has laid off several executives following allegations of bribery. The company laid off nine executives from their positions earlier this week, including President Shuling Ying. CMGE said that rapid growth had created "operational challenges" and inefficiencies that needed addressing, and removing these executives would help make this to happen.
But later rumors surfaced that the executives were removed because of bribery charges related to investment in an external game publisher. CMGE said that it was "investigating the matter" but would not comment any further.
But now the company has released a statement, rejecting those allegations, and repeating its earlier reason for the removal on those executives: for the purpose of streamlining 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, according to Gamasutra's report.