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Firm gets bogus 2B yuan loan for high-speed railway
By Zhang Jiawei (chinadaily.com.cn)
Updated: 2010-03-17 16:59
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A construction firm in Shanghai was found to have illegally acquired 2 billion yuan in bank loans in the name of the still-in-progress Beijing-Shanghai high-speed railway, the 21st Century Business Herald reported on Wednesday.
According to the report, 1.32 billion yuan of those loans has already been used in land development.
The firm was facing great financial pressure in its business operations, a company official was quoted as saying, and the idea of applying for new loans in the name of the Beijing-Shanghai high-speed railway was approved at a Jiangqiao town leaders' discussion.
The loans were granted because the firm provided a guarantee letter issued by the finance department of Jiangqiao town in Shanghai, despite a lack of any other collateral, the newspaper said.
