Date
25 July 2017
Fosun Group chairman Guo Guangchang, through a spokesman, said he did not receive any inappropriate benefits. Photo: Bloomberg
Fosun Group chairman Guo Guangchang, through a spokesman, said he did not receive any inappropriate benefits. Photo: Bloomberg

Fosun chairman accused of exchanging favors

Fosun Group chairman Guo Guangchang has been accused of granting favors to an executive of a Chinese state-owned company 12 years ago in exchange for unspecified benefits, the Wall Street Journal said, citing a state media report.

Guo wasn’t accused of wrongdoing, according to the Xinhua News Agency report, which was about the trial and sentencing of Wang Zongnan, the former chairman of China’s Bright Food Group Co.

A spokesman at the Shanghai No. 2 Intermediate Court said the Xinhua report was based on a statement from the court.

Fosun said on an official social-media account Tuesday that it didn’t receive inappropriate benefits from Wang’s company and that it was a strong supporter of the government’s anti-corruption campaign.

Wang, 60, was sentenced to 18 years in prison on Tuesday for embezzling 195 million yuan (US$31.4 million) when he worked for a unit of a local supermarket chain from 2001 to 2006.

Of that sum, Wang took 1.2 million yuan for himself, the report said, without saying what happened to the rest of the money.

According to Xinhua, Wang approached Guo for his help in purchasing for Wang’s parents in 2003 two villas developed by Fosun Group’s property arm in exchange for unspecified benefits for Fosun Group. Guo agreed, the report said.

Fosun then sold two villas in Shanghai’s Songjiang district to Wang’s parents for 2.08 million yuan, or about 2.69 million yuan less than the properties’ market value at that time, Xinhua said.

The two villas were sold in 2010 and 2013 for a total of 14.8 million yuan, it added.

In its statement, Fosun said the properties were sold at a “reasonable” discount.

Fosun, a private company, has been acquiring insurance companies, retailers and real estate in the United States, Europe, Japan and Australia, the Journal said.

Among its high-profile acquisitions were the French resort operator Club Méditerranée and a stake in Canadian circus troupe Cirque du Soleil.

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RA/CG

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