We use cookies to tailor your experience and present relevant ads. By clicking “Accept”, you agree that cookies can be placed per our Privacy Policy
ACCEPT
avatar image
Advertisement

China Resources mining deal probed by anti-graft watchdog

Party watchdog considers graft claim against chairman Song Lin

Reading Time:3 minutes
Why you can trust SCMP
0
The interests of minority shareholders are discussed in Beijing yesterday by Li Su of Hejun Vanguard (left), Liu Jipeng of China University of Political Science and Law, and lawyer Chen Ruojian. Li urged Hong Kong’s securities regulator to launch a probe. Photo: Simon Song

The Communist Party's anti-graft watchdog said yesterday it was processing a whistle-blower's complaint about alleged negligence in an acquisition by China Resources Power Holdings (CRP), as the company hit back.

The People's Daily reported that the Central Commission for Discipline Inspection had confirmed it had received the complaint. "Please be patient," it quoted an unnamed commission official as saying.

In Hong Kong, six small shareholders stepped up their campaign to seek compensation from CRP's management for alleged wrongdoing. Analysts said more disclosures by CRP were needed to allay investors' concerns.

Economic Information Daily reporter Wang Wenzhi accused CRP management of agreeing to a 5 billion yuan (HK$6.3 billion) overvaluation of some coal mining assets in Shanxi province.

He said they paid 7.9 billion yuan for an 80 per cent stake, valuing the whole deal at 10 billion yuan. Another party valued the deal at half that just months before, Wang said.

Wang accused Song Lin , chairman of CRP parent China Resources (Holdings), of ordering the deal in 2010. Song was CRP chairman at the time.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2-3x faster
1.1x
220 WPM
Slow
Normal
Fast
1.1x