Four officials from bankrupted shipyard Mingde Heavy Industry were arrested for tax fraud

Mingde Heavy IndustryFour employees at bankrupt shipyard Mingde Heavy Industry were accused for tax fraud. According to the China’s State Administration of Taxation, the employees falsifying accounts for shipbuilding contracts and legal certificates with a Greek owner in order to secure an export tax rebate of 2.73 million USD in period 2010-2014. The public prosecutor’s office started investigation of the frauds and arrested three senior managers, including the president of Mingde Heavy Industry Ji Fenghua, as well as one administrator. According to the officials all the four people were engaged into the falsifying accounting documents and declaring false information about the cancelled contract in order to keep the tax rebate.

According to the public prosecutor’s office, the minimum sentence for the crime would be five years imprisonment.

Mingde Heavy Industry was one of the largest chemical tanker buildings in the world, which declared bankruptcy in August 2015. Then, the largest creditor Sainty Marine applied to liquidate the yard. later all the three auctions to sell the Mingde Heavy Industry shipyard’s assets failed due to lack of investors.

The bankruptcy of Mingde Heavy Industry triggered the bankruptcy of Sainty Marine, which suffered from increasing debt and low liquidity. The company released that will quit the shipbuilding business upon completion of an ongoing restructuring process.