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Auditors uncover possible misappropriation of funds at China Environment subsidiary
AN audit has uncovered possible misappropriation of rental income monies at a wholly-owned unit of mainboard-listed industrial waste gas treatment company China Environment.
The company requested that the management of its subsidiary, Anhui Dongyuan Environmental Protection Co, hand over company seals entrusted to them pending the resolution of the misappropriation issue.
But the unit's management "has refused to hand over the . . . company seals and escorted Singapore management off (their) premises".
China Environment is in the process of resolving the dispute amicably before taking any further action, it said in an exchange filing on Friday.
Separately, China Environment said former employees at another subsidiary, Xiamen Gongyuan Environmental Protection Technology, have refused to provide the accounting records for their company or hand over company seals pending the resolution of their unpaid salaries and retrenchment benefits.
China Environment said it will "explore alternatives to mitigate this audit issue".