Jinan Truck unit involved in bank fraud

• Source: Global Times
• [08:20 January 14 2011]
• Comments

CNHTC Jinan Truck Co Ltd, a Chinese maker of heavy-duty vehicles, said Thursday that a subsidiary was involved in a bank fraud that could threaten repayment of 500 million yuan ($75.67 million) worth of deposits.

Jinan Truck did not identify the bank.

But local media, including Caijing magazine and the State-owned People's Daily website, reported that the company fell victim to a commercial paper fraud at Qilu Bank, a small lender partly owned by the Commonwealth Bank of Australia.

Qilu officials were not immediately available for comment.

Jinan Truck said that it was actively seeking support from the government, in a bid to get back the deposits, and that the scandal will not impact its operations or cashflow, the company said in a statement to the Shenzhen Stock Exchange.

Qilu Bank, based in the eastern province of Shandong, was being investigated for its part in a commercial paper fraud of up to 1.5 billion yuan ($227.01 million), Caijing magazine reported January 4.

Reuters