Petroleum engineering firm Wison charged with bribery in China
Petroleum engineering firm denies chairman is connected to son of former security tsar
The mainland authorities have charged Hong Kong-listed petroleum engineering firm Wison Engineering Services and its chairman and majority owner Hua Bangsong with bribery and conspiracy to commit fraud, the company announced yesterday.
"In the worst case, Wison could face a fine if convicted of either or both charges," it said in an announcement filed with the Hong Kong stock exchange.
But Wison denied Hua was connected to Zhou Bin, a son of former security tsar Zhou Yongkang, or that Hua, who is under arrest, held shares in Wison on behalf of Zhou Bin or any other person.
Rumours have circulated on the mainland that Zhou Bin was a secret shareholder of Wison, and used his father's influence to gain contracts for Wison from Petrochina, the Shanghai and Hong Kong-listed subsidiary of state-owned China National Petroleum Corporation.
Zhou Yongkang, who previously worked at CNPC, is under investigation for misconduct by the Communist Party's Central Commission for Discipline Inspection. Zhou Bin has been detained since December over allegations of bribery.
"On November 10, 2014, the board was informed that Wison has received legal documents in connection with the Chinese investigation from a court in China, which state two charges have been instigated against Wison and Hua in relation to certain alleged criminal offences," the company said yesterday.
"Wison Group Holding, one of the controlling shareholders of the company, understands from the investigation authority there is no evidence to show Hua is connected to Zhou Bin or Hua holds any shares as nominee or on behalf of any other person."
The bribery charge against Wison and Hua alleges they were involved in offering unlawful advantages, including Hua's property, valued at 7.62 million yuan (HK$9.64 million), being made available to a senior manager of an unnamed customer of Wison in 2009, the company disclosed.
The alleged conspiracy to commit fraud concerned irregularities in a tender for a project in 2004, the company said, adding that the authorities alleged the project generated revenues of 69 million yuan for Wison.
Wison shares, which have been suspended from trading since September 2 last year, will resume trading today.
