(Forbes, Dec 24, 2006) The chairman of major private oil firm Great United Petroleum Co Ltd (GUPC) has been detained by police for suspected economic crimes, the Oilnews reported.

Gong Jialong, also chairman of Hubei-based Tianfa Group, which is a shareholder in GUPC, is also suspected of having defaulted on debts as well as improperly using funds from the listed company, the Oilnews reported, citing unnamed sources.

As of the end of May, the Tianfa Group owed a total of 2.9 bln yuan to nine banks, including the Hubei provincial branch of Bank of China, the Jingzhou branch of the Agricultural Bank of China as well as the Jingzhou branch of the China Construction Bank, Oilnews said.

Tianfa Group also improperly used 2.77 mln yuan of its listed unit S*ST Tianfa Co (SZA 000670) and defaulted on some 182 mln yuan borrowed from the listed company, the publication noted.

( 1 usd = 7.82 yuan )

Source:Forbes