Sewco claims business unaffected by arrests in kickback case
Toymaker Sewco International Holdings said yesterday that business remained normal and sales volumes had not dropped after chairman Cheung Po-lun was arrested by Independent Commission Against Corruption officers investigating an illegal rebate scheme.
Mr Cheung and executive director Hui Kwok-chu were arrested last month for their alleged roles in the $6 million scam involving the soliciting of illegal rebates from a number of suppliers for placing purchase orders with the company.
Mr Cheung has resigned as chairman of the company, while Mr Hui has been suspended from the company' board.
In their place, the board appointed Mr Cheung's daughter, Cheung Yan, as chairman and his nephew, Cheung Wang, as an executive director.
Sewco's shares have been suspended from trading since June 20, a day before the arrests.
