China claims Red Flag sinks due to miss-management (sic) -

The world's second largest Linux distributor, Red Flag Software has been shut down due to mismanagement.

Employees are owed months in unpaid wages as Communist China reveals that companies shafting the workers is not just the preserve of imperialist capitalist outfits and an Open Sauce company can be just as evil as a proprietary outfit.

Red Flag was China's state-funded answer to global software giants like Microsoft. It was set up in late 1999 and was pushed as a communist alternative to Windows, offering desktop and server OSes built on the open-source Linux.

It did well and made deals with partners such as Oracle and Dell whose products were certified to support and shipped with Red Flag Software.

Signs that Red Flag was in financial trouble surfaced in April 2013 when employees were told they would not be paid their wages, and the company's headquarters in Haidian district was forced to close in December over unpaid rent and power bills.

The Chinese company filed for liquidation over the weekend and terminated all employee contracts. The company's 150 employees reportedly are now seeking to reclaim some $2.46 million in unpaid wages from the Chinese Academy of Sciences.

Apparently, the workers think that the reason that the company tanked was the academy did not fork out $6.56 million in grants, as pledged, to support the software vendor. The Chinese academy refuted the claims, saying Red Flag's team had mismanaged the company and pulled out of a project that would have brought in the promised funds.

The Chinese government has launched several of its own operating systems, including Ubuntu Kylin which has been downloaded over 1 million times since its launch last year, as well as a the China Operating System (COS), a mobile platform developed to compete against Google Android and Apple iOS.