NewPR firm Edelman distances itself from detained Chinese TV anchor Rui Chenggang
US public relations firm admits it co-owned shares in a Beijing-based company with Rui Chenggang, despite an apparent conflict of interest on the television anchor's part.
US public relations firm Edelman has admitted that it co-owned shares in a Beijing-based company with Rui Chenggang, a star anchor at China Central Television, for several years despite an apparent conflict of interest on the latter’s part.
Rui, 36, was taken away by prosecutors last Friday amid a widening corruption investigation at the state broadcaster. While no official explanation has been given for Rui’s detention, Chinese media reports have revealed that he had owned shares in a Beijing-based public relations company while it provided service to his employer, CCTV.
Watch: CCTV presenter goes missing from show after being detained
A spokesman for Edelman told the South China Morning Post that it jointly owned Beijing Pegasus Public Relations Consulting with Rui between 2007 and 2010. Rui had been one of three founders of Pegasus in 2002, Beijing Industrial and Commercial Bureau records show.
In August 2007, Edelman acquired a majority stake in the firm, after which Rui held 7.9 per cent as a “non-active investor”, the Edelman spokesman told the Post.
The spokesman said that it “took longer than expected” for Rui to sell his shares in the company after Edelman took control.