Local companies should be alert to the increasing risk of economic crimes.  Speaking at a press briefing, Tong Yongzheng, director of the Zhabei branch of the municipal public security bureau, said reports of commercial fraud and illegal fundraising had been on the rise since the second half of last year.  As the economic situation has worsened, the risk of fraud has increased.  “Firms must do all they can do to avoid the risk by improving their management procedures and being aware of the financial positions of their business partners.”  Mr. Tong Yongzheng said.

A growing number of Chinese entrepreneurs are committing criminal offences, and most of them enjoy high political status or social recognition, a report by a senior lawyer shows. Wang Rongli, a Shenzhen-based lawyer, collected case files of 85 influential entrepreneurs sentenced or accused of criminal offences in 2009.   A total of 36 were from State-owned enterprises (SOE) and 49 from private enterprises.   Statistics show the SOE entrepreneurs’ cases involved 3.4 billion Yuan ($500 million), including 932 million Yuan from corruption and about 1.3 billion Yuan misappropriated.  Source:  People’s Daily Online

BIIA Newsletter February 2010 Issue