PDA

View Full Version : Chinese "Tin" Man arrested on bribes from Goldman Sachs



David Guyatt
10-09-2013, 09:47 AM
Say it ain't true!

Bribery in business just doesn't happen. We all know that don't we.

Anyway, humour aside, good ol' Goldman is still greasing the wheels, it seems?


Chairman of world's largest producer of tin arrested for accepting bribesAuthorities in China have arrested Yunnan Tin's chairman Lei Yi in the latest example of the country's crackdown on corruption

theguardian.com (http://www.theguardian.com/), Wednesday 9 October 2013 09.43 BST
5370
President Xi Jinping has made fighting corruption a key plank of his new administration. Photograph: Mohd Rasfan/AFP/Getty Images
Chinese authorities have arrested and charged the chairman of the world's largest producer of refined tin, Yunnan Tin Co, for accepting bribes, a provincial government said, in the latest example of the country's crackdown on graft.
President Xi Jinping (http://www.theguardian.com/world/xi-jinping) has made fighting corruption (http://www.theguardian.com/world/2013/sep/09/china-corruption-charges-ding-shumiao-liu-zhijun) a key plank of his new administration, saying the problem is so severe it could affect the ruling Communist party's survival.
Lei Yi, Yunnan Tin (http://en.ytc.cn/)'s chairman, had been charged with taking 20m yuan (£2.04m) in bribes from four people, the Yunnan government said on one of its official websites, including from the chairman of a company called Leed International Education Group, in which Goldman Sachs (http://www.theguardian.com/business/goldmansachs) has a stake. Goldman Sachs declined to comment.
The Yunnan government website said Lei had taken money from Leed's chairman, Li Hongtao, to help smooth the way for Leed to buy Yunnan Tin's 45% stake in a private college both companies had set up in 2009. The tin company is based in the south-west province of Yunnan.
The website report made no mention of Goldman Sachs, saying simply that Leed was co-founded by a "foreign investment group".
A source familiar with the matter said Goldman Sachs' sprivate equity arm signed an agreement with Li in 2008, in a deal worth under $70m (£43.6m) that ultimately formed Leed.
An official at Yunnan Tin said the company had not received any legal documents about Lei's case and the company was still trying to confirm the details.
For now, Lei was still chairman and the legal representative for the company, the official said, adding that production and sales had not been affected.
Yunnan Tin said on 6 July that Lei's corporate duties had been assumed by a deputy as Lei was under investigation for "serious discipline violations", a phrase normally used to describe corruption.
An executive at Leed's public relations department in Beijing, who gave her family name as Wang, said the education company would not comment on the matter and was unable to provide contact details for Li.
Yunnan Tin produced about 70,000 tonnes of refined tin last year, nearly double that of the next largest producer, Malaysia Smelting Corp Bhd.
Chinese authorities have announced the investigation or arrest of a handful of senior officials this year, and their inquiries have begun to reach into powerful state-owned industries.
Among them, former executives from oil giant PetroChina are being investigated in what appears to be the biggest graft investigation into a state-run firm in years.