Press Statement: China Fibretech – Shareholders to get accountability with Special Audit

Date: May 8, 2018

For some time now, SIAS has been highlighting to the regulator the plight of the disgruntled shareholders in the suspended company, China Fibretech. Shareholders have lost value in their investment and have long been frustrated. Their main worry has been the conduct of the former chairman and CEO, Mr Wu, who had refused to co-operate with the board, auditors and shareholders. He has much to explain and account for.

SIAS is, therefore, pleased to see that the reconstituted board of China Fibretech has now put forth a proposal for the resumption of trading of China Fibretech, and has appointed KPMG to conduct a Special Audit into the claims of three alleged customers, ultimately accounting for the cash in the company. Shareholders have long been clamoring for accountability, especially for the cash in the company. The Special Audit by KPMG, we hope, will provide shareholders with the expected clarity and accountability on many unanswered questions and should there be any wrong doing, SIAS expects the wrong-doers to face the full weight of the law.

SIAS welcomes the refreshing move by the board to look for a new business and investors, including state-owned China Capital Investment Group (CCIG), Asia Hausse Investments and Newsome Holdings. As the company moves into a new era, SIAS hopes that the company would bring shareholders growth and dividends with improved transparency.

David Gerald
Founder, President & CEO
Securities Investors Association (Singapore)