Fri, Oct 31, 2014, 8:58 AM EDT - U.S. Markets open in 32 mins.

Recent

% | $
Quotes you view appear here for quick access.

Caterpillar Inc. Message Board

  • farid_rashad@ymail.com farid_rashad Feb 12, 2013 11:36 AM Flag

    fake revenues, phony invoices, sham factories

    Tales of shady business practices abound in China - fake revenues, phony invoices, sham factories - but until recently, the problem seemed confined mostly to Chinese companies.

    Concern is growing about risks to U.S.-based multinationals in a country where American audit regulators are locked out by the Chinese government and bribery and fraud are routine.
    Questions about transparency and integrity weigh heavily on China, the world's second-largest economy, as it assumes greater economic leadership and responsibility. These doubts test its ability to adhere to international standards.

    Stories of business deception - confirmed by corporate sleuths, former business executives, court filings and experts on accounting in China - are commonplace.

    There was the Chinese company that billed itself as a high-tech television screen manufacturer, but had a factory that turned out to be a man selling fireworks from a shack.

    Or there was the Chinese biodiesel plant that sat idle for months, then sprang to life one day - when investors showed up for a tour - only to fall silent again.

    Last month, there was the scandal at a Chinese unit of Caterpillar Inc (CAT), the world's largest construction equipment manufacturer, based in Peoria, Illinois.

    On January 18, Caterpillar disclosed "deliberate, multi-year, coordinated accounting misconduct" at the Siwei unit of ERA Mining Machinery. Caterpillar said it would write off most of the $654 million it had paid to acquire ERA only months earlier.

    Caterpillar's Siwei stumble was not the first for a U.S. multinational in China, but the scope of the problem stood out.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
 
CAT
100.16+1.54(+1.54%)Oct 30 4:01 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.