Daiwa House Finds Fund Misappropriation at Chinese Affiliate

Economy

Osaka, March 13 (Jiji Press)--Japan's Daiwa House Industry Co. <1925> said Wednesday that a large amount of funds is likely to have been misappropriated at an affiliate in the Chinese city of Dalian.

The amount of the misappropriated money at Dalian Dahezhongsheng Estate Co., which engages in residential development and other business in China, is estimated to be at least 23.4 billion yen, Daiwa House said.

Two board directors and a treasurer sent from a Chinese company that also invests in Dalian Dahezhongsheng are believed to have been involved.

Procedures have been launched to file criminal charges with local investigative authorities against the three mainly on suspicion of embezzlement.

Daiwa House President Keiichi Yoshii told a press conference that the misappropriation is "extremely regrettable."

[Copyright The Jiji Press, Ltd.]

Jiji Press