Publicis Groupe auditors tipped to be investigating Betterway

The raid is understood to have taken place late last week, and the agency doors remain locked.

Betterway was the first major Chinese acquisition Publicis Groupe made. In its 2011 annual report, the group recognzed a €4 million writedown on Publicis Betterway.

Campaign contacted Huang and Laurie Kwong, the outgoing Publicis China CEO, yesterday. Huang, Betterway's CEO and a former Procter & Gamble executive, confirmed that there is currently a "disagreement" between his Chinese management and the 4A management, but declined to comment further. 

Similarly, Kwong declined to provide any information on the situation.

Betterway is China’s largest field marketing network, with offices in Shanghai, Beijing, Chengdu, and Guangzhou.

Follow Campaign's website for more information as it becomes available.

Although the reason for the current investigation is unknown, Publicis Groupe has had problems with a venture in China before. In September 2010 Vivaki Exchange’s CEO Warren Hui and general manager Ye Pengtao abruptly left the Publicis Groupe agency, which suspended the executives. The company later promoted its long-serving general manager Dylan He to CEO, Sharon Wang joined as general manager of digital media at Vivaki Exchange China, and Jonathan Qiao was appointed deputy general manager of Vivaki Nerve Center China.