China Property

Chinese developer Country Garden investigating allegations its staff used faked documents in Guangxi project

PUBLISHED : Monday, 16 May, 2016, 8:24pm
UPDATED : Monday, 16 May, 2016, 8:49pm

Chinese property developer Country Garden said it is looking into allegations that some of its staff had faked documents to obtain a sales permit for a project in Guangxi province, adding the matter is “under investigation” by local police and will not affect the company sales.

Country Garden staff are alleged to have used counterfeited seals and signature to obtain a sales permit for a new project in Guangxi on May 4, according to the Wuxiang New District Planning and Construction Bureau of Guangxi province.

Wu Jianbin, Chief Financial Officer of Country Garden, said the case and related sales staff are under investigation and stressed that it was an isolated incident, according to comments Monday at the company’s annual general meeting.

“The case was caused by some employees unfamiliar with the (approval) process, we will strictly deal with this,” Wu said, “The company’s other projects sales are not affected.”

Wu added that Country Garden’s sales in third and fourth-tier cities have recovered strongly so far this year and the company is confident to complete is full year sales target of 168 billion yuan (HK$200 billion).

In an effort to take advantage of improved sentiment, many developers have pressed to speed up the sales kickoff for new projects. Mainland news website, reported Country Garden has reduced the average time from land purchase to unit sales to 4.3 months, down from the previous 6.7 months. The report suggested that representatives of Country Garden were under pressure to meet the more aggressive schedules.

One mainland developer, who asked not to be named, said the sales permit approval process are known to be lax in Guangxi, noting that some developers were likely taking advantage of the limited oversight. He added that the action against Country Garden staff would act as a warning to other developers.