No fraud at Q-Tech, says chief
Q-Tech Holdings has denied market rumours that it was a victim of fraud and said they might have been started by a potential corporate predator.
The cash-strapped electrical appliance distributor also said there was no truth in reports that a member of management had fled after embezzling from the firm.
'It is a slander. Someone may want to push the share down [to prepare] for a hostile takeover,' Q-Tech chairman John Lam To-ming said yesterday.
Rumours of the theft surfaced on Friday after Q-Tech said it was owed $214.89 million in account receivables by five customers.
On the same day Q-Tech's share price tumbled 26 per cent from 28.5 cents to 21.1 cents. The shares fell a further 6.6 per cent to close at 19.7 cents yesterday.
Mr Lam said executive director So Chee-keung resigned last month but still held 12 per cent of the firm.
He said the company had no idea how much would be recovered of the account receivables until the end of its financial year on June 30.
