Hontex, another Fujian based company admits lying in the prospectus saying it was all a "misunderstanding".
"Embattled mainland fabric maker Hontex International Holdings, accused by the Securities and Futures Commission of deception and fraud, admitted yesterday to making misleading statements during its December share sale and said it plans to compensate investors."
Meanwhile the auditors are covering themselves in gory as usual:
"In May, KPMG resigned as Hontex's auditor after its staff members were offered cash gifts to cover up discrepancies in the sportswear firm's books. A week earlier, the Independent Commission Against Corruption had charged KPMG senior manager Leung Sze-chit with allegedly taking a HK$300,000 bribe to overlook accounting problems with Hontex's prospectus."
Supposedly, the cash gifts were just token gestures and not bribes.... it was all a misunderstanding?
No comments:
Post a Comment