Shanghai Electric boss detained
(China Daily)
Updated: 2006-08-16 09:27
BEIJING -- Shanghai Electric Group Co Ltd, the mainland's largest power
equipment manufacturer, confirmed yesterday that its chairman Wang Chengming had
been placed under investigation by the authorities, the third board member to be
detained in just two weeks.
A visitor walks past the booth of Shanghai
Electric at a recent trade fair in Shanghai. Shanghai Electric, the
mainland's largest power equipment manufacturer, confirmed that its
chairman Wang Chengming had been placed under investigation by the
authorities. [China Daily] |
"Wang is suspected of the serious violation of certain rules and regulations
of the Communist Party and is therefore being detained for further
investigations," the company, which used to be actively pursued by Hong Kong
investment funds, said in a statement made yesterday to the Hong Kong Stock
Exchange.
Last week, Executive Director Han Guozhang and Vice-Chairman Zhang Rongkun
were detained for questioning.
Trading in Shanghai Electric shares was suspended on the Hong Kong Stock
Exchange yesterday, the second such suspension since the detention of Han and
Zhang was announced last week. Shanghai Electric's shares stood at HK$2.55 (30
US cents) before the last suspension.
Although any details of the allegations made against the three were
conspicuous by their absence from the company's statement, Hong Kong newspapers
reported that Han was allegedly involved in misappropriating millions of yuan in
employee benefits and pension funds in 2004.
Han allegedly pocketed the money by making claims in the name of non-existent
laid-off workers.
Zhang has reportedly been under investigation since July 17 over the alleged
illegal borrowing of 3.2 billion yuan (US$402 million) when he was in charge of
Shanghai Fuxi Investment, which holds an 8.15 per cent stake in Shanghai
Electric.
Media reports said that a local court had frozen Shanghai Fuxi Investment's
assets.
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