$15k for PR exercise

sunandaC

Sunanda K. Chavan
The payment was made to Jamie Lin, an employee of Sinochem Group in Shanghai, for inside information on rules in the tourism sector, in which Mr Ng's company operates.

Mr Lin was asked by Mr Ng to find out whether one of his travel companies, GZL, was under threat of losing its travel licence.

Mr Ng said he was unaware employees of his company had falsified documents related to the registered capital of eight of his companies until April, when he was shown evidence by the police six months after his arrest.

"I didn't know about the registrations to increase capital.

I don't understand why certain departments of the (eight companies, including Et-China) increased the capital registration," he told the court.


Mr Ng is founder and chief executive of Et-China. He has been charged with falsifying company documents for the registration of businesses to lift the registered capital across eight companies controlled by Et-China by 130 million yuan.

By lifting the registered capital, company employees can make more money by increasing the scope of their business. Mr Ng is facing four charges: two of embezzlement, one of bribery and one of falsifying documents.

The charges followed a commercial dispute with the Guangzhou city-owned Lignan Group over assets bought by Et-China between 2006 and 2008.

Lignan wants the assets back at the price Et-China paid -- about $10 million -- but Swiss group Kuoni has offered $100m for the company, the deal that triggered the dispute.

Much of Mr Ng's fate may depend on whether the court upholds the legality of a bridging loan for 83 million yuan provided to Et-China by GZL, the travel agency it gained control of from the Lignan Group.

Mr Ng could wait another nine months -- matching the time he has already spent in a Guangzhou prison -- before his fate is determined by the same Communist Party authorities that he has been fighting for control of the city's biggest travel agency.

Mr Ng's lawyers have vowed to appeal if he is found guilty on any of the four charges.

The hearing of the case was expected to finish last night.

For the second day in a row, Mr Ng forced back tears as he described what he said was an orchestrated campaign of state-sponsored bullying by Chinese authorities since his arrest.
 
Back
Top