JES International companies sue former administrative officer

Athens: Four China-based subsidiary companies of JES International Holdings intend to sue Ju Li Li, a former administrative officer of Jiangsu Eastern Heavy Industries.

Jiangsu New Eastern Marine Engineering Equipment, Jiangsu Nereus Shipyard, Jingjiang Eastern Heavy Steel Structure and JYJJP Eastern Shipyard Supplies allege that Ju took illegal possession of the group’s administration records, including the its constitutional documents, and the seals of JES’ Chinese subsidiary companies.

“Following the resignation of Mr Jin Xin, Ms Ju Li Li had absconded with the group paraphernalia,” JES International explained in a filing to the Singapore stock exchange today.

JES said that a periodic review of its financials had uncovered possibly unauthorised payments made to Jin Xin, the group’s former CEO and chairman, and suspicious transactions between JES and companies in which Jin had undeclared interests.

“The company had originally intended to conduct an in-depth investigation into the company’s financials regarding the same,” JES said today.

“However, it had come to the company’s attention that the financial records of the group, including account books, cheque books and financial seals, had been removed from the custody and possession of the group by relatives of Mr Jin Xin. As a result, the company is at present unable to conduct a more in-depth investigation into its findings.”

JES said it would conduct a more thorough investigation once the legal proceedings against Ju had been completed, and is looking into other possible actions made by Jin Xin’s associates, who are alleged to have taken copies of the group’s financial records, account books, cheque books and seals.

The Singapore-listed group said it plans to employ an independent third-party auditor to conduct a special audit if more financial irregularities are unearthed in its investigation.