Sino Forest says .. ."We can categorically say Sino-Forest is not the “near total fraud” and “Ponzi scheme” as alleged by Muddy Waters"
To see what a difficult task the Advisors to the Independent Committee had:
- Over 300 bank accounts, only checked 28 of them that contained 81% of the funds. Couldn't check the rest for overdrafts
- Forestry Bureau(s) not willing to confirm agreements since they may not be legal, or they may even be on SF's payroll.
- Third party AI and supplies not willing to provide any information
- Contracts based on verbal agreements and personal relationships
- Internal Sino Forest systems in a mess. Staff using third party email addresses and documents not backed up or deleted.
- Uncooperative management.
- and so on..
Given the extensive and amusing list of "challenges" the IC had in their investigation, Sino Forest management must be awarded top marks for creating such a positive spin in their release, which is certainly entertaining but not very reassuring to shareholders.
Interim report from the Advisors to the Independent Committee.
The ex Chairman/CEO/Founder Allen Chan and Mr Bowland an independent director and member of the 3 person team looking into the fraud allegations must have resigned for no reason at all.
