Troubled Chinese medicine maker Nam Pei Hong (Holding) is being sued for allegedly failing to pay a $6.22 million consultancy fee to an executive director. Justein Wong Chun filed a supreme court writ through his company Heta Services on April 22 against Nam Pei Hong. The company is already being investigated by the Commercial Crime Bureau for an alleged fraud linked to a stock shortfall at a subsidiary. According to the writ, Mr Wong signed a five-year agreement with Nam Pei Hong in April last year to serve as an executive director. But since November 15, the writ alleges it failed to pay Mr Wong's service fee now valued at $6.22 million. Chief executive William Lee Sze-kwong said yesterday Nam Pei Hong had stopped paying the fee. He declined to reveal the reason for the stoppage but said it was not because Nam Pei Hong could not afford it. According to Nam Pei Hong's 1996 annual report, Mr Wong was one of three executive directors who signed similar agreements last April. The others were Wong Yiu-man and Nam Pei Hong chairman Sum Yuk-biu. Nam Pei Hong, troubled by deep losses at the interim stage, recently reshuffled its shareholding structure. Tung Fong Hung, which owns 29 per cent, is selling its interest to mini-conglomerate International Tak Cheung Holdings for $71.9 million. Mr Sum said yesterday he was planning to resign after the transaction had been completed. It is understood Tung Fong Hung executive directors, including Mr Lee, have already taken over all decision making at Nam Pei Hong from Mr Sum and his brothers. Members of the Sum family relinquished their position as substantial shareholders by selling 23.58 per cent of Nam Pei Hong to Tung Fong Hung in June. Nam Pei Hong suffered net losses of $85.13 million in the six months to September last year against $4.86 million the previous year.