"In response to a Nasdaq cash verification request, the Company's independent registered public accounting firm (the "Audit Firm"), Paritz & Company, P.A. ("Paritz"), from January 5 to January 9, 2012, independently verified the Company's cash balances held in financial institutions in China in which the Company and its subsidiaries maintain bank accounts (the "Accounts"). "Independently verified" means that an audit firm visited in person each of the institutions and physically observed bank employees printing or otherwise preparing or completing documentation which substantiated the cash balance for the Accounts."
Perhaps we should ask them why their banks didn't refuse the procedure. Perhaps they changed their mind after the disaster that took place with ABAT. Or perhaps these were local branches?
These guys did it right. Fu did it wrong. Or he doesn't have all that cash. Take your choice.
"At a time when there is speculation as to the credibility of certain Chinese companies, SkyPeople investors can be reassured that our cash balances have been independently verified and that we employ of a high degree of financial integrity in terms of our financial management systems," said Mr. Yongke Xue, SkyPeople's CEO.