Text Version
RSS Feeds
Newsletter
Home Forum Photos Features Newsletter Archive Employment
About US Help Site Map
SEARCH   About US FAQ Site Map Site News
  SERVICES
  -Text Version
  -RSS Feeds
  -Newsletter
  -News Archive
  -Give us feedback
  -Voices of Readers
  -Online community
  -China Biz info
  What's new
 -
 -
Director arrested in bank scam
+ -
08:32, May 21, 2009

Click the "PLAY" button and listen. Do you like the online audio service here?
Good, I like it
Just so so
I don't like it
No interest
 Related News
 China encourages banks to extend loan period for small firms
 Brown outlines banking changes in Britain
 Moody's downgrades S Korean banks' credit ratings
 Comment  Tell A Friend
 Print Format  Save Article
A bank manager in the eastern Anhui province has been arrested for allegedly forging stamps, illegally operating financial businesses and trading bank credits, officials said yesterday.

Li Qun, manager of the Tengda office of Agriculture Bank of China's (ABC) Fuyang branch, surrendered to police early this month for failing to repay 165 million yuan ($22 million) "illegally raised" from the public.

That is more than the 100 million yuan earlier reported, according to Xinhua News Agency. A director of the branch, Xu Lin, was also sacked on Monday after Li's surrender, according to China News Radio.

"We discharged Xu Lin for her failure in supervising subordinates. No malpractice was done by Xu nor the bank," Liu Su, Party discipline official of the ABC's Anhui sub-branch, was quoted as saying.

It is unknown where the illegally raised cash has gone.

About 60 people have reported losses to local police. The biggest sum of money lent to Li by a single person was 20 million yuan, the report said.

Sources said Li's family has powerful political connections in Fuyang city - a reason many creditors trusted her.

The report said hundreds of people have been gathering in front of the Tengda office with a banner asking "ABC to give back (their) hard-earned money."

But the bank claimed it did not collude with Li in her "individual conduct of illegal credit business" according to the radio report.

Li also allegedly borrowed money from many local officials, which has sparked public suspicion of the legitimacy of their earnings.

"How could a trade union director have millions of yuan to offer?" a netizen questioned.

Guo Xudong, a lawyer specializing in financial crimes, said creditors could reclaim their money from the third parties, if any, who received part or all of the funds from Li.

Trading of bank's acceptance bills is a legal blindspot in China, according to Guo.

"It is a loop which could continue. Suspects pool deposits from the public, then use those funds to pay banks for acceptance bills the suspects had given out to ex-creditors."

"By doing so, one could temporarily strengthen cash flow, or disappear suddenly with large amounts of creditors' money without paying back the bank's acceptance."

Source: China Daily



  Your Message:   Most Commented:
Tamil protesters block major freeway in downtown Toronto
Jackie Chan's 'freedom' talk sparks debate
Congress wins election in India
Official fined for underage sex
Bias or information gap

|About Peopledaily.com.cn | Advertise on site | Contact us | Site map | Job offer|
Copyright by People's Daily Online, All Rights Reserved

http://english.people.com.cn/90001/6662366.pdf