Bohai Shipbuilding caught up in $567m loan fraud

Bohai Shipbuilding caught up in $567m loan fraud

Bohai Shipbuilding Heavy Industry, an affiliate yard of state-run China Shipbuilding Industry Corporation (CSIC), has been involved in a loan fraud case which is currently under a court trial in Liaoning.

Xu Guohong, former president of Bohai Shipbuilding’s ship repair subsidiary, and another two senior officials of the company are alleged to have made a series of fake sales contracts with the yard’s affiliate companies between 2011 and 2014 in order to secure loans of up to RMB3.9bn ($567m) from two local commercial banks.

Xu has admitted the fraudulent activities to the court and said the company had difficulties securing loans during the shipbuilding downturn and had used the funds to repay debts to other banks and financial institutes.

The court has yet to reach a ruling on the case.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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