Beijing No. 2 Secondary Court has issued an indictment on Gome Electrical Appliance Company, a wholly-owned subsidiary of Chinese electronics retailer Gome, which is alleged to have been involved in a bribery scandal.
According to the indictment, GEAC was partly involved in a bribery case involving a total of CNY4.56 billion between 2006 and 2008, a period when Huang Guangyu was serving as president of Gome. Gome said it has attached great importance to this case and has briefed senior lawyers to act on its behalf.
Gome believes that even if GEAC is found guilty of systematic bribery in the worst case, the fine that the company will be required to pay will not have a major negative effect on Gome's operations and its general financial situation.
The indictment disclosed that Huang's residence has been monitored by the public security department for suspected insider trading. He was detained by the police on January 23, 2009 and the detention period was re-set by the police on December 17, 2009.
