Probe deepens into state firm Guangdong Rising’s loss-making Australian mining deals
Former chairman of firm that is said to have covered up huge losses on acquisitions handed to prosecutors for investigation
A corruption probe involving a state-owned enterprise in Guangdong said to have covered up huge losses on four Australian mining firms it acquired has deepened, with its former chairman handed over to prosecutors for investigation.
The Guangdong Provincial People’s Procuratorate did not elaborate on the investigation into Li Jinming, who was chairman of Guangdong Rising Assets Management – owned by the provincial government – in its brief statement on Thursday.
But the company has suffered losses of more than 10 billion yuan (US$1.51 billion) on its investments in Australia and a former head of Guangdong’s state assets watchdog has reportedly been asked to assist with the investigation, according to media reports.
Guangdong Rising opened at the end of 1999 with registered capital of 10 billion yuan. Its business interests range from non-ferrous metals to information technology and property.
The company began investing in Australia at the end of 2008, when commodities prices had been hit by the global financial crisis and also at a time when Chinese firms were pursuing mining assets overseas, especially in resource-rich Australia.