Medical equipment supplier China Renji Medical Group has sacked its chief executive, blaming him for an HK$81 million loss on a deal it struck two years ago.
China Renji said yesterday that it was firing Lucian Yu Chung-hang, the son of dealmaker and Hong Kong Football Association director Lawrence Yu Kam-kee, for allegedly bungling a 2008 sale of the medical firm's 49 per cent stake in a Hong Kong stockbroker to a British Virgin Islands company.
The company claimed that the vehicle, named Clear Smart Enterprises, had missed a deadline set for last month to pay for the purchase of its investment in boutique corporate finance house and stockbroker SBI E2-Capital.
China Renji did not specify in its announcement why Lucian Yu should be held responsible for Clear Smart not paying up for the SBI E2 stake.
Instead, it claimed: 'Mr Yu has failed to exercise his fiduciary duties as a director of the company and has committed material faults in representing the company in the disposal of SBI E2-Capital to Clear Smart Enterprises.'
Yu could not be reached. A personal assistant to China Renji chairman Li Juewen claimed the company's management team were all too busy in meetings to answer queries, despite repeated requests for comment.
China Renji, which leases medical machines to mainland hospitals, has reported a sharp reversal in its financial performance in recent months. Its auditors refused to sign off its most recent set of accounts.