Suntech claims to be victim of massive fraud over GSF investment

July 30, 2012
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

November 17, 2025
Renewable energy developer SunCable has signed an Indigenous Land Use Agreement (ILUA) with the Powell Creek Native Title Holders, marking a milestone for the company’s AAPowerLink project in Australia's Northern Territory.
November 17, 2025
Jakson Group has started Phase 1 construction of its 6GW integrated solar ingot, wafer, cell and module manufacturing facility at Maksi, Madhya Pradesh.
November 17, 2025
India’s race to 500GW is being slowed by critical grid bottlenecks, NTPC PMI’s Abhinav Jindal told PV Tech.
November 17, 2025
Saatvik Green Energy, through its subsidiary Saatvik Solar Industries, has secured solar PV module orders worth INR1.77 billion (US$19.9 million). 
November 17, 2025
US solar module manufacturer First Solar will build a new production facility in the state of South Carolina, which will bring its US nameplate manufacturing capacity to 17.7GW by 2027.
Premium
November 17, 2025
PV Talk: India’s race to 500GW of clean energy is being slowed by critical bottlenecks. NTPC PMI’s deputy general manager Abhinav Jindal tells Shreeyashi Ojha what steps India must urgently take to stay on track with its 2030 targets.

Upcoming Events

Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 24, 2026
Lisbon, Portugal
Solar Media Events
June 16, 2026
Napa, USA