Suntech claims to be victim of massive fraud over GSF investment

Facebook
Twitter
LinkedIn
Reddit
Email

Suntech Power Holdings said it had started multiple legal proceedings against a number of unidentified parties regarding investment guarantees it provided for a joint venture PV power plant project developer, Global Solar Fund, S.C.A., Sicar (GSF). However, Suntech has claimed that a pledge of €560 million of German government bonds by a third-party investor of GSF, GSF Capital Pte Ltd., may never have existed. Suntech said that it may have to delay second quarter financial reporting as a result.

According to Suntech, recent efforts to “monetize” its investment in GSF led to the discovery that the “collateral related to the security interest may not have existed and the company may have been a victim of fraud.”

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Dr. Zhengrong Shi, Suntech's chairman and CEO said, “We are very disappointed that this has occurred and it has the highest level of attention from the company and the board, including the audit committee. There is no indication that management had any involvement and we are vigorously pursuing all avenues to resolve this matter and ensure that we protect the interests of our shareholders.”

Dr. Shi added in a statement that, “While we continue to investigate and take actions to resolve this matter, Suntech's daily operations will not be impacted. It's business as usual and we remain focused on supplying the market with excellent solar products.”

Suntech also said that it may delay its earnings announcement for the second quarter of 2012 until an investigation and financial impact assessment could be made, yet it hoped to publish key financial figures in the week beginning August 20, 2012.

The company is holding an investors conference call today to discuss the situation.
 

Read Next

Premium
July 21, 2026
PV Tech Premium speaks with Ember's Elisabeth Cremona on the 25GW of hydropower hybridisation potential across seven EU countries.
July 20, 2026
Australia’s National Electricity Market (NEM) connected 9.1GW of new generation and energy storage to full output in FY26.
July 20, 2026
The US Department of Commerce (DOC) has begun an antidumping and countervailing duty (AD/CVD) investigation into solar cells produced in Ethiopia.
July 20, 2026
The government of Malaysia has unveiled the next round of its Large-scale solar (LSS) program tender seeking 2.5GW solar PV co-located with 1.25GW battery energy storage system (BESS).
July 20, 2026
China’s new set of rules, unveiled last week, are expected to “do a good job in cutting out low-cost, outdated technology across the value chain”, according to a report from PV Tech Research.
July 20, 2026
India's renewable energy ministry has extended the exemption from the ALMM List-II on PV cells for net-metering and open-access solar projects until the end of December 2026.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
April 20, 2027
Istanbul, Türkiye