An independent investigation commissioned by Chinese property developer Quanzhan Group has confirmed allegations of financial misconduct against its former CEO Li Shu. The findings of the probe, conducted by law firm King & Wood Mallesons, were made public on Tuesday, September 29, 2020..
The investigation was launched in May 2020 after Quanzhan received a whistleblower complaint alleging that Li had engaged in unauthorized financial transactions and other improprieties. Li was subsequently suspended from his position as CEO and removed from the company’s board of directors..
The independent probe found that Li had indeed committed a number of financial irregularities, including:.
* Unauthorized use of company funds for personal expenses.
* Unauthorized borrowing of funds from third parties without the approval of the board of directors.
* Falsification of financial records.
The investigation also found that Li had used his position to benefit himself and his associates, including by:.
* Awarding contracts to companies controlled by his family members and friends.
* Accepting kickbacks from contractors.
* Using company assets for his own personal use.
The findings of the independent probe have been submitted to the relevant authorities, including the China Securities Regulatory Commission (CSRC) and the Shenzhen Stock Exchange. Quanzhan has also taken steps to strengthen its internal controls and corporate governance procedures to prevent similar incidents from occurring in the future..
In a statement, Quanzhan said that it .
