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Wison CFO Resigns as Bank Accounts Frozen in China Probe
Wison Engineering Services Co. (2236), supplier to PetroChina Co., said China’s authorities froze certain bank accounts and that its chief financial officer resigned, as investigations into company executives continue.
The oil services company said CFO Chen Wenfeng resigned “to pursue other business opportunities,” according to a statement to the Hong Kong stock exchange last night. In a statement today, Wison said regulators asked about “certain projects,” took records and froze bank accounts, some of which have since been unfrozen.
The company wasn’t given reasons for stopping its bank accounts, it said in the statement. Its chairman and founder Hua Bangsong and a manager in a subsidiary’s finance department, Zhao Hongbin, are still assisting authorities with their investigations, it said.
Wison said on Sept. 3 that Hua was helping in unspecified investigations, a day after its shares plunged 16 percent and were suspended from trading. China is investigating PetroChina Co. (857)’s former Chairman Jiang Jiemin and four senior executives for graft. The nation’s largest oil producer was Wison’s biggest customer before 2012.
“Hua is not contactable and he is not able to discharge his daily duties in relation to the group’s business operation and administration,” Wison said in today’s statement. “The company is still liaising with the regulatory authorities, assessing the impact of the investigations on its normal operation and taking actions to manage cash-flow and risks.”
Wison’s revenue from contracts with PetroChina was around 111 million yuan ($18.1 million), or 5.6 percent of its revenue, in the first half of 2013, according to a statement on Sept. 13. Outstanding contracts with PetroChina amount to around 204 million yuan, it said.
Wison didn’t say when its shares will resume trading.
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