Fujian Nuoqi alerts police to cash transfers of missing chief Ding Hui
Lax internal controls and poor corporate governance are seen as being behind the troubles of Fujian Nuoqi, which has reported to Hong Kong and mainland police about its missing chairman's unauthorised transfer of 232.05 million yuan (HK$290.9 million) from the company's coffers.
Lax internal controls and poor corporate governance are seen as being behind the troubles of Fujian Nuoqi, which has reported to Hong Kong and mainland police about its missing chairman's unauthorised transfer of 232.05 million yuan (HK$290.9 million) from the company's coffers.
"This matter is really bad. The fact that such a large amount of money can be transferred shows the company has very poor internal controls," said Raymond So Wai-man, the dean of the business school at Hang Seng Management College.
The missing money accounts for a large portion of the company's cash, which stood at 350.35 million yuan at the end of last year.
The company's investigation found Ding Hui, its chairman and chief executive, had instructed the transfer of a combined 69.55 million yuan from a Hong Kong account at Bank of Communications on January 27 and April 3 to a British Virgin Islands firm that is not owned by Nuoqi.
The bank account belongs to Nuoqi Fashion International, a wholly owned subsidiary.