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Two Sainty Marine executives arrested over alleged fund misuse

Two Sainty Marine executives arrested over alleged fund misuse
The former general manager of Sainty Marine, Wang Junmin, has been apprehended by the Chinese authorities over alleged misuse of company funds, according to the Xuzhou City People’s Court.

In a statement, the court also said another former Sainty Marine executive Cao Chunhua was also arrested over similar crimes.

The cases of both the accused are currently under investigation, the court said.

Wang has quit his position as Sainty Marine’s general manager in May this year, while Cao tendered his resignation early this year as deputy general manager, finance manager, and secretary of the board.

In May, Wang and Cao, together with vice general manager Li Jiu, who are all major shareholders of the shipbuilder, had their property assets worth RMB300m ($47.2m) frozen by the Bank of Jiangsu with approval from Nanjing Intermediate People’s Court.

The court order came after Sainty Marine failed to repay the loan from Bank of Jiangsu after the yard failed to issue new shares via a non-public offering to raise funds.

Sainty Marine is now facing a host of problems such as mounting debts, contract cancellations by buyers, frozen assets and resignation of key executives.

TAGS: Shipyards