Tuesday, November 29, 2011

Sino-Forest -- or is it Monthy Python

Imagine that the entire world thinks that you are a fraud; to debunk these views you hire an independent group that will investigate your business, your assets and your suppliers/buyers.  Sino bought standing forest and then sold these forests to third parties (Authorized Intermediaries ) -- you give the names of these AI and their addressed to your crack team of investigators, these buyers are big firms BTW, the own truck, chain saws and possibly even processing plants (these are huge) then again this can be farmed out to other parties (still these plants must exists somewhere -- trust me transporting timber is not a small scale operation). Then your crack team goes to China and goes to meet with these companies.  Guess what happens in the case of Sino-forest's AI:  The independent investigator goes to the business addresses (supplied by Sino-Forest) but they can find no trace of the companies -- in fact they find other business that have been around for years...

Bronte Capital does an excellent job here, have a gander.  How some of these guys don't end up in jail is beyond me... of course since they are mostly Chinese national living in China, I wish the RCMP good luck in locating them and arresting them (thank God the CFO is Canadian -- he's going to have fun over the next decade).

This is the kind of conversations the RCMP will soon have:

RCMP:  Im looking for Mr. Kai Kit Poon

China Police:  我不知道主席套件

RCMP:  Mr Poon lied to Canadian investors

CP: 他没有中国人所以我不在乎

Nuff said!


Post a Comment

Subscribe to Post Comments [Atom]

Links to this post:

Create a Link

<< Home