Sichuan Sinopec to sue over loan shark accusation

Beijing (CNS) –- Sichuan Sinopec Company (Sichuan Sinopec) plans to sue Liu Ming, who the media quoted as saying the company was a loan shark, the company announced on February 14.

Liu Ming, the legal representative of Sichuan Jinxin Real Estate Development Co., Ltd (Jinxin), said he had proof that he once borrowed money dearly from Sichuan Sinopec, a transaction that involved Sichuan Sinopec's chairman Huang Jiuchang and his nephew Huang Bo.

Liu also said a subsidiary of Sichuan Sinopec sold two building units his company had developed without informing him.

Regarding the accusations, Sichuan Sinopec's justification was that the loan interest did not amount to usury, and that they paid Jinxin for the housing project cost and demolition expenses. Liu Ming, the company contends, has distorted reality and lied to the public via the media.

Sichuan Sinopec suggested Liu Ming appeal to the courts rather than to public opinion.

It is known Sichuan Sinopec is a joint venture company, in which Sinopec Group has a 40-percent stake while the remaining 60 percent was obtained by private capital.