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Former SOE boss on trial
(Xinhua)
Updated: 2005-02-07 20:46

Xu Zhi, former president of the Guangzhou International Trust and Investment Co. Ltd, (GZITIC) went on trial Friday in the Guangzhou Intermediate People's Court accused of taking bribes of 140 thousand yuan (US$17,500) and causing losses of State assets of 20 million yuan (US$2.5 million by neglect of duty.

Guangzhou's procuratorate said Xu had taken bribes from employees of GZITIC's branch companies in Hong Kong and Macao in his trips to the SARS for Spring Festival holidays from 1993 to 1997.

Xu was accused of losing 20 million yuan in State assets by neglecting his duty and approving letters of credit for two companies when he was chief manager and president of the GZITIC from 1995 to 1996.

In the year to December 1996, the hosiery company under the Dinghu Tongyi Enterprises Group in Zhaoqing City, applied for two letters of credit valued at US$3.3 million. Xu approved two letters of credit without checking Dinghu assets.

The company was later found to have assets of no more than US$2.1 million. The company failed to honor the letters of credit and went bank bankrupt, causing GZITIC losses of 11 million yuan.

Xu was also accused of extending a short-term loan of US$3 million to the Shenzhen Trust and Investment Co. Ltd, disregarding finance management rules. The Shenzhen company went bankrupt in January 1999, losses of more than 9 million yuan (US$1,125,000) to GZITIC.



 
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