Graft-busters raided the offices of CY Foundation - a listed, online gaming company, the former chairman of which was jailed for defrauding the firm - last month, a filing with the Hong Kong stock exchange said yesterday.
It said the information and documents taken by the anti-graft agency were related to purported deposits of 18 million yuan (HK$22.4 million) and US$400,000 paid in 2008 and 2009, respectively, for the acquisition of some mainland properties. The deals have not materialised, but no refund has been made to the company.
The materials collected also involve alleged purchases of goods, totalling about HK$8.4 million, from suspicious sources in 2009, as well as purported special bonuses, made to some former employees without any proper authorisation, totalling about HK$6 million, in April 2011.
"The board understands from the ICAC that the investigation relates to the former management of the company under the Prevention of Bribery Ordinance and that the group, the existing directors and senior management are not involved in the investigation," CY Foundation said in the announcement.
Saying that the relevant payments under those transactions had been fully expensed or written off in the company's financial statements in 2011-2012 and before, the firm believes the transactions had no further financial impact on the group.
