Whistleblower rocks China solar firm

SAN JOSE, Calif. — China's LDK Solar Co. Ltd. , a manufacturer of multicrystalline solar wafers, issued a statement following the actions of a whistleblower.

A former employee alleged that there were ''inconsistencies'' in the company's books. LDK has formed an independent group to investigate the charges.

"A few days ago, a former financial staff member of LDK, Charley Situ, who was terminated for cause on September 25, 2007, sent email letters to LDK's management and others subsequent to his termination alleging inconsistencies in LDK's inventory reporting," the company said in a statement.

''Mr. Situ was originally hired as a financial controller in March, 2007, reporting to Qiqiang Yao, LDK's Vice president and chief accounting 0fficer, who reports to Jack Lai, executive vice President and chief financial officer,'' the statement said.

''In response to the allegations and in accordance with instructions of the board of directors, LDK's management team and board of directors formed an internal committee to investigate the allegations and conduct an immediate physical inventory of LDK's polysilicon materials,'' the statement said.

''The management team found no material discrepancies as compared to LDK's financial statements. The management team believes that these allegations have no merit. Additionally, the Audit Committee has asked an independent auditing firm to conduct a separate, independent engagement on LDK's inventory,'' according to the company. ''These findings are expected to be disclosed after the completion of the review and consideration of the Audit Committee. LDK has not been contacted by any regulatory authority regarding this matter."

source:EE times