China prosecutors order arrest of four ex-executives at Huarong for bribery (updated)

China Huarong Energy Co

22/01/2019 11:45

(Updates to show the executives no longer hold their company
posts)
    SINGAPORE, Jan 22 (Reuters) - Prosecutors have ordered the
arrest of four senior former executives at subsidiaries of
China's largest distressed debt manager, China Huarong Asset
Management Co  2799.HK , for suspected bribery, prosecutors
said.
    Wang Pinghua, former chairman of Huarong Real Estate Co, Bai
Tianhui, former general manager of China Huarong International
Holdings Ltd, Guo Jintong, deputy general manager of Huarong
International, and Zhao Zichun, deputy general manager of
Huarong Guiyang Real Estate, were sought on suspicion of taking
bribes, the prosecutors said.
    Company executives invariably lose their posts when action
is initiated against them over suspected wrongdoing.
    Their cases are under investigation by the Tianjin People's
Procuratorate No.2 Branch, the prosecutors in the port city said
in a statement, without providing details.
    Reuters could not immediately reach any of the four
executives or their representatives for comment.
    Huarong did not immediately respond to a request for
comment.
    The prosecutors did not indicate whether the arrests were
linked to a suspected corruption case of the former chairman of
the parent company, Lai Xiaomin, who has been under
investigation since April last year, accused of a long list of
wrongdoing, from cronyism and taking bribes to the embezzlement
of public property. urn:newsml:reuters.com:*:nB9N1XA01A
    It was not possible to reach Lai or a representative for
comment. The Central Commission for Discipline Inspection, the
Communist Party's anti-corruption body, in October released a
video in which Lai expressed regret for his lapses.
    More than 15 Hong Kong-listed, Huarong-linked companies saw
their shares tumble last year after the arrest of Lai, one of
the most senior executives to be brought to book in China's
anti-corruption campaign. urn:newsml:reuters.com:*:nL3N1WV1UW
    The parent company Huarong's shares have lost about 60
percent in value since Lai's arrest.

 (Reporting By Shu Zhang
Editing by Robert Birsel)
 ((shu.zhang@thomsonreuters.com; +65 6870 3549; Reuters
Messaging: shu.zhang.thomsonreuters.com@reuters.net; Twitter
@shuzhang4))