SFC and ICAC joint operation on listed company's suspicious money lending activities
Media report that the company is Sunway (0058). This probably relates to a pile of 6 loans totalling about HK$130m made in 2016/17 and impaired in 2019. The 2019 accounts stated "The Group has noticed that 6 borrowers (and their guarantors, if any) failed to repay" and "the enforceability of the collaterals, if any, was quite difficult". Also in 2019, HK$100m of "earnest money" paid in 2017 for an aborted acquisition was fully impaired. We hope the ICAC/SFC will investigate that too. A current and a former ED and 3 others have been arrested.
SFC and ICAC joint operation on listed company’s suspicious money lending activities
Issue date: 2021-08-13 16:30:47
Five individuals including a current senior executive and a former senior executive of a listed company have been arrested in a joint operation “Jade Qilin” of the Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC).
The joint operation also involved a search of the offices of the listed company and the premises of other related parties (Note 1).
The SFC conducted the search on suspicion of breaches of the Securities and Futures Ordinance in relation to the suspicious money lending activities of the listed company; in this connection, the management might have engaged in misfeasance or other misconduct prejudicial to the listed company or its shareholders. The ICAC conducted the search and made the arrests for suspected corruption offences under the Prevention of Bribery Ordinance.
The SFC and the ICAC will continue to work closely to tackle the misconduct of listed companies including suspicious loan transactions and directors’ misconduct, to protect the investing public and maintain the integrity of Hong Kong’s financial markets.
No further comment will be made at this stage as investigations are still ongoing.
- The joint operation was conducted under the arrangement of the Memorandum of Understanding signed between the SFC and the ICAC. Please see the SFC's press release dated 19 August 2019.