Property developer ETC uncovers unauthorised withdrawals in China

Singapore

IT was a union that gave Emerging Towns & Cities Singapore (ETC) a lifeline for a fresh start. But after two years, the marriage is beginning to break down, mired in broken trust and conspiracy.

On Wednesday, ETC - the Myanmar and China property developer - revealed that 118 million yuan (S$24 million) had been transferred without authorisation between July and October 2017 from its 60 per cent-owned subsidiary Huizhou Daya Bay Mei Tai Cheng Property Development Co to two companies controlled by ETC's majority shareholder, Luo Shandong.

ETC said its non-executive chairman, Christopher Chong, who is also its legal representative of Huizhou Daya Bay, had repeatedly sent warning letters asking the Huizhou Daya Bay staff involved to stop making further unauthorised transfers and to return the company's seal and the financial books. Repeated attempts have also been made to approach Mr Luo to discuss a settlement of the dispute. But all ended in naught, with the Chi…