ICAC requests documents from Shenzhen Investment

PUBLISHED : Saturday, 04 August, 2012, 12:00am
UPDATED : Wednesday, 15 August, 2012, 10:58pm


The Independent Commission Against Corruption (ICAC) visited the main office of Shenzhen Investment in Hong Kong on Wednesday and requested company documents, the Hong Kong-listed property developer said yesterday.

The ICAC is conducting an investigation on the suspected bribery of unnamed persons, including former and present employees of Shenzhen Investment, 'to obtain options under the share option scheme of the company for the period from 2002 to 2009,' Shenzhen Investment said in a Hong Kong stock exchange filing.

'The company also understands that such investigation does not involve any directors of the present board and is not against the company,' Shenzhen Investment said.

'The company has provided documents related to its previous share option scheme, which had expired on June 5, and some accounting documents to the ICAC.'

The property developer's shares were suspended on Wednesday but are expected to resume trading on Monday. Shenzhen Investment is 43.09 per cent owned by the Shenzhen government.

It develops mid- to high-end property projects in southern China. The company holds 600,000 square metres of investment properties at prime locations in Shenzhen and has land reserves of 11.12 million sq m, of which 2.05 million sq m is under construction, according to the company's 2011 annual report.

On July 5, Wu Jiesi, a non-executive director of Shenzhen Investment, was prosecuted at the Eastern Magistrates' Court for late disclosure of share transactions between March 4, 2011 and March 10, 2011, the company said on July 6.

Wu was fined HK$12,000 and ordered to pay investigation costs of HK$20,260 to the Securities and Futures Commission for failing his duty of disclosure over that period.

'Dr Wu has confirmed to the board that the late filing was solely caused by his inadvertent oversight. Based on the above, the board considers that such court ruling will not affect Dr Wu's competence in continuing to discharge his duties as a non-executive director of the company,' Shenzhen Investment said.

Several directors also have resigned from the company over the past year or so. On April 24, Guo Limin stepped down as executive director and chairman of Shenzhen Investment. On March 27, Liu Biao resigned as a non-executive director. The company did not state reasons for these two directors' resignations.

On 21 June 2011, Xu Ruxin resigned as executive director and president of Shenzhen Investment for health reasons, the company announced on the same day.