China Forest Says Former Executives Faked Bank DocumentsLynn Thomasson
China Forestry Holdings Co., partly owned by Washington-based private equity firm Carlyle Group, said a probe into irregularities of 2010 financial statements found the former management team was the source, according to a statement to the Hong Kong stock exchange today.
The bank statements provided by China Forestry’s previous executives to auditor KPMG LLP which were falsified, the statement said. There were also inconsistencies in the company’s insurance policies and logging permits for about 100,000 cubic meters of wood were faked.
China Forestry halted trading in its stock in January and replaced Chief Executive Officer Li Han Chun. Li was detained by police in China’s Guizhou province in February for allegedly embezzling 30 million yuan ($4.6 million).
China Forestry owns about 171,780 hectares of forests and is among the nation’s top three private operators, according to its website.
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