Singapore-based shipbuilder JES International Holdings Limited reported that four of its Chinese subsidiaries started legal proceedings against Ju Li Li, a former administrative assistant at one of its China-based subsidiaries, for the illegal possession of JES’ administration records, as well as the seals of all of the company’s Chinese subsidiaries.
Ju Li Li, a former administrative officer at Jiangsu Eastern Heavy Industries, reportedly misappropriated the records and the seals following the resignation of Jin Xin, former CEO and Chairman of JES.
A review of the company’s financials has also uncovered one or more possible unauthorized payments made to Jin Xin, as well as questionable transactions between JES and companies in which Jin Xin’s interests are not declared, JES said in a stock filing.
JES had originally intended to conduct an in-depth investigation into its financials regarding the questionable payments, but the investigation was hampered due to the missing financial records of JES and its subsidiaries, including account books, cheque books and financial seals, reportedly taken by people associated with Jin Xin.
JES is also looking into possible actions against the said associates of Jin Xin to recover the missing property.
If the company’s financial records, once retrieved, show that there may be financial irregularities, JES will accordingly engage an independent third party auditor to conduct a special audit on its financials.
JES also said it will not hesitate to take further legal actions against Jin Xin if the missing financial records show irregularities.