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

May 20, 2026
Canadian energy firm Enbridge will develop a 365MW/1,600MWh solar-plus-storage project in Wyoming, US, as part of an ongoing partnership with tech and data giant Meta.
May 20, 2026
The California Independent System Operator (CAISO) Board of Governors has approved the ISO’s 2025-2026 transmission plan, which accommodates 45 GW of new solar PV.
May 20, 2026
Price is the main barrier to PPAs being transacted in the UK market today, a panel at the Renewable Procurement and Revenue Summit said.
May 20, 2026
GameChange Solar has partnered with First Solar to support the deployment of domestically manufactured thin-film solar modules in India. 
May 20, 2026
European solar manufacturing start-up Carbon has abandoned its plan to build a 5GW module assembly plant in France due to a lack of conditions required for EU-made solar PV manufacturing.
May 20, 2026
The US$300 million North Star platform will target investments across solar, wind, hybrid and energy storage projects. 

Upcoming Events

Solar Media Events
May 20, 2026
Porto, Portugal
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Media Partners, Solar Media Events
June 2, 2026
Johannesburg, South Africa
Media Partners, Solar Media Events
June 3, 2026
National Exhibition and Convention Center (Shanghai)