The company will spend 1.7 million dollars on the Fair Trade Fund.

According to foreign media reports, Alibaba said in Monday that the company will spend 1.7 million of dollars from the Fair Trade Fund to compensate victims of the fraud scandal.

Alibaba announced in Monday that more than 2000 Chinese supplier customers suspected of fraud, although not personally involved in the incident, but the company chief executive Wei, chief operating officer resignations to resign. Lu, chief executive of Taobao, takes over as chief executive of Alibaba's Business-to-business company.

Jack Ma, chairman of Alibaba Group, said the internal investigation found an increasing number of fraudulent transactions. He said in a statement: "After nearly one months of investigation and forensics, confirmed that 2009, 2010 two years, 1219 (accounted for 1.1%) and 1107 (0.8%) of the" Chinese suppliers "customers suspected of fraud! ”

"Integrity is the most cherished value base for Alibaba, which includes the integrity of our employees and the integrity and safety of our online trading platform for small business customers," Mr Ma said. We want to release a strong message that any act that undermines our culture and values is unacceptable. In an open letter to employees issued on the same day, he asked all Ali to adopt a 0 tolerance attitude towards dishonesty.

Alibaba said in a statement that each fraud case involved buyers of the payment amount of less than 1200 dollars on average. In addition, Mr. Wei and resignations were not involved in any activities involving fraudulent buyers of dishonest suppliers, but they were willing to take responsibility for the corporate integrity culture being subject to organizational damage.

Linda Kozlowski, a spokeswoman for Alibaba, said the company would Dar Kozloviski 1.7 million dollars from the Fair Trade Fund to compensate aggrieved clients. Alibaba issued the statement after the Hong Kong Securities Exchange closed in Monday. Alibaba's shares fell 3.7% per cent before the announcement.