BOC unaffected by US$21m loan scandal
(Xinhua)Updated: 2007-05-15 14:13
Bank of China (BOC), the country's second largest lender, has not been
affected by the 160 million yuan (US$20.9 million) loan scandal surrounding its
Shenyang branch, the Shanghai Securities News reported on Monday.
The bank has recovered 120 million yuan from the major fraudulent creditor by confiscating its assets, announced BOC spokesperson Wang Zhaowen.
In a BOC investigation into its retail loans in November 2004, a number of car dealers from Shenyang, capital of Liaoning Province, were found to have defrauded large quantities of money with forged documents from the bank's Shenyang branch.
The main borrower behind the scandal, the Shiji Huarong Yafei Automotive Trading Co, was awarded loans by the branch totaling 160 million yuan.
Two of the company's corporate representatives were arrested by the police in March 2006, with investigations still ongoing. The company's phone lines have been cut off, and nobody is available for comment.
BOC spokesperson Wang Zhaowen announced that 21 members of the BOC's Shenyang branch staff, held responsible for the loans, have either been demoted or dismissed from the company. The vice president of the branch, only revealed as being a Mr. Li, was also dismissed and is currently being investigated for further liabilities.
Media reports however, claim that Li subsequently fled to the US, along with his family, at the end of 2006.
Wang did not detail other car dealers involved in loan scandal.
Wang said the bank has enhanced loan control and only grants its provincial-level branches the right to approve retail loans targeted at individuals, households, and small- and medium-sized enterprises.
According to Wang, as of April this year, the Hong Kong-listed bank has offered a total of more than 200 billion yuan in retail loans, with its non-performing ratio kept within one percent.
(For more biz stories, please visit Industry Updates)
| ||