Singapore-listed shipbuilder JES International and its subsidiaries have commenced legal proceedings against a former administrative officer for the illegal possession of administration records and seals.
According to JES’ filing to the Singapore Exchange (SGX), Ju Li Li, former administrative officer of Jiangsu Eastern Heavy Industries, had absconded with the group paraphernalia following the resignation of former CEO Jin Xin in May 2015.
Ju’s action had delayed JES’ s investigation into alleged financial fraud attributed to Jin Xin.
During a periodic review of its financials, JES uncovered possible unauthorised payment made to Jin Xin, as well as questionable transactions between JES and companies in which Jin Xin’s interests were not declared.
An in-depth investigation into the company’s financials was conducted, but financial records of the group, including account books, cheque books, and financial seals, had been removed by associates of Jin Xin, said JES.
The missing financial records have hampered the company’s effort in the investigation and JES is considering possible legal actions against associates of Jin Xin’s associates for the recovery of these documents.
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“In the event that the company’s investigation into its financial records shows that there may be financial irregularities in the group’s accounts, the company will accordingly engage an independent third-party auditor to conduct a special audit on the company’s financials,” said JES in its statement to SGX.
Moreover, JES stated that it will not hesitate to take all necessary actions against Jin Xin if the findings uncovered that the financial irregularities were related to him. JES will make a police report and commence legal proceedings against Jin Xin, JES added.
This post was sourced from IHS Maritime 360: View the original article here.
