HNA denies embezzlement claims as it fights for control of Hong Kong Airlines

  • Bizline

Apr 21, 2019-

HONG KONG: Embattled Chinese conglomerate HNA Group has denied accusations of embezzlement and financial irregularity made by a rival group of shareholders in Hong Kong Airlines (HKA) as the two sides fight for control of the struggling carrier. The allegations were made by Zhong Guosong and Frontier Investment Partner who between them control 61 percent of HKA’s shares. On Tuesday, they declared they had taken control of the carrier and made Zhong, a former HKA director, chairman after an extraordinary shareholder meeting. The pair said on Wednesday, via a spokesperson, that an investigation had been launched into “the embezzlement of HKA assets and serious financial misappropriation by HNA Group parties.” In an emailed statement to Reuters on Friday, HNA said that the allegations “are false”. “HNA Group is committed to the highest standards of integrity in all of its activities and expects the same of all of its representatives,” it added. HKA’s website still lists Hou Wei as chairman. Hou joined HKA in September last year after more than four years with HNA-controlled Hainan Airlines, according to his LinkedIn profile. HNA holds about 29 percent of HKA, having cut its majority holding two years ago. This week’s battle comes as HKA is struggling to survive. (REUTERS)

Published: 21-04-2019 11:28

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