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HK nabs 19 for alleged bribery in IPO scam
December 19, 2002
HONG Kong's anti-graft body on Tuesday arrested 19 people for alleged bribery scams related to the listing of three small manufacturers on the stock exchange.
Those arrested included the chairmen of the three companies, a certified public accountant, a financial consultant, a senior manager of an accounting firm and 13 others from the companies, the Independent Commission Against Corruption (ICAC) said in a statement.
The chairmen of Gold Wo International Holdings Ltd, Yue Fung International Group Holding Ltd and Fu Cheong International Holdings Ltd were among those detained, the South China Morning Post and Ming Pao Daily reported yesterday, without quoting anyone. A senior manager from Ernst & Young LLP was also among the detainees, Ming Pao Daily said.
Ernst & Young's Hong Kong spokeswoman Annesa Leung said the firm has no comment on the case.
Shares of the three companies were suspended on Monday.
Gold Wo manufactures plastic household products, and Yue Fung is in electronic products such as calculators and digital cameras. Fu Cheong makes circuit boards.
A financial consultant accepted 'substantial' bribes from a number of company chairmen and conspired with a certified public accountant and the companies to overstate profits to meet a listing criterion requiring minimum net income of HK$50 million (S$11.2 million) for the three years preceding the listing, the ICAC said.
The companies were also alleged to have used bogus business transactions supported by false letters of credit and false sales invoices to inflate sales, ICAC said. - Bloomberg