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Related: Kelon to make official response
to scandal
GUANGZHOU, Aug. 1 (Xinhuanet) -- Gu Chujun, chairman of
Chinese refrigerator maker Kelon, and two fellow executives were detained on
Monday, according to sources with the Guangdong provincial public security
department.
The company, Guangdong Kelon Electrical Holdings Co.,
was suspended from stock trading.
Kelon Chairman Gu Chujun, Deputy Chief Executive Yan
Yousong and Assistant to the Chief Executive Jiang Yuan are being held for
further investigation.
The China Securities Regulatory Commission started to
probe Kelon in May, and ended the investigation on July 20, though the result
was not made open to the public.
A 60-million-yuan (7.4-million-US dollar) deficit in
the Kelon 2004 annual report, contrasting blatantly with the 200 million yuan
(25 million US dollars) in profit in the first three quarters, had caught public
attention.
On July 8, a Kelon report said that the company
received the resignation of its three independent directors, who claimed that
they were forced to submit resignations because they couldn't fulfill their
obligations due to various limits. Enditem |