Wednesday, August 12, 2015

Fosun targeted in a corruption scandal in China – Jornal de Negócios – Portugal

The real estate company of Fosun have sold properties to the chairman of a Chinese state-owned company at a price below the market rate. A suspicion of favoritism that the owner of Loyalty explains with discounts made at a difficult time for real.

It is owner of Loyalty, Health and Light is in the race for New Bank . The Fosun is a Chinese giant who has been a wave of acquisitions. However, this Wednesday, August 12, are not your purchases that are being reported. What is to be advanced, by the Chinese agency Xinhua, is that Fosun is linked to a case of favoritism that can configure corruption.

As described in the Financial Times, the case involves Guo Guangchang, chairman Fosun of the board of directors and former leader of a state owned company, Bright Food Group, named Wang Zongnan, however sentenced to 18 years in prison for embezzlement and conducting bribes. Zongnan was managing director of another company, the Shanghai Friendship Group also state.

The Fosun and Shanghai Friendship Group had a partnership. And Wang have yielded benefits Fosun, and have also been favors in reverse, according to the same agency, which is based on the judicial verdict which sentenced Wang Zongnan.

In the case of Fosun, the what is at stake is the sale of two houses on the part of the real estate company of Fosun. The operation was completed in 2003 with the sale of real estate to the family of Wang Zongnan. The properties were sold for 2.1 million yuan, about 300 thousand euros. The amount is 2.7 million yuan (387 million euro) below the market price of real estate at the time.

“We believe that real estate sales prices were within the reasonable discount range offered by the real estate in an economic recession experienced extreme environment at the time “, indicates the official response of Fosun.

The Chinese company goes further and denies any favoritism in the same connection to the Shanghai Friendship Group :. “The Fosun group never sought improper benefits from the existing cooperation with the Shanghai Friendship Group, so there was no room for any Wang advantage for the group”

“The Fosun continuously supports the anti-corruption efforts the government, “also indicates the response sent to the Business. As the Financial Times points out, have been targeted by several anti-corruption work by the Chinese leader Xi Jinping ,. Also in April, the president of Chinese oil company was arrested on suspicion of corruption. The same happened to a deputy minister.

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