Suspect statements under investigation

PUBLISHED : Thursday, 15 July, 1999, 12:00am
UPDATED : Thursday, 15 July, 1999, 12:00am

The stock exchange has referred up to nine suspected mis-statement cases of listed companies to the Commercial Crime Bureau (CCB) since last year, of which at least some of the referrals are being investigated by the bureau, according to the Secretary for Financial Services Rafael Hui Si-yan.

In a written reply to Democratic Party legislator Cheung Man-kwong, Mr Hui said eight cases were referred to the CCB for possible investigation last year.

In those cases, the related auditors issued qualified opinions in their clients' financial statements.

According to the Hong Kong Society of Accountants (HKSA), an auditor will issue a qualified opinion when he disagrees or has doubts with some treatment or disclosure in the financial statement of the client company.

Mr Hui said one more case had been referred by the exchange to the CCB since the beginning of this year.

At the same time, these cases were separately being reviewed or investigated by other regulatory bodies such as the Securities and Futures Commission, the HKSA and the Independent Commission Against Corruption, Mr Hui said.

'Out of [last year's] cases, the HKSA had reviewed two cases and concluded that the circumstances did not justify further investigation,' he said.