DUSHANBE, February 4, 2014, Asia-Plus – The Agency for State Financial Control and Combating Corruption has instituted criminal proceedings against Li Fen (phonetically spelled), director general of Tajik-Chinese joint venture Zeravshan Cold Company (ZGC), and Lyu Daoin (phonetically spelled), chief financial officer, ZGC.
According to the anticorruption agency press center, the Chinese nationals are charged with concealment of actual profits of the enterprises from 2010 to July 212.
During this period, the enterprises reportedly underpaid 3.9504 million somoni in taxes. Criminal proceedings have been instituted against the Chinese nationals and an investigation is under way.
ZGC was launched as a joint venture with Nelson Resources Ltd (44%) and the Tajikistan government (51%) and the IFC (5%) in 1994. In September 2002, Avocet signed a heads of agreement to acquire the Tajik gold assets of Toronto-based Nelson Resources Ltd held through Nelson”s subsidiary, Commonwealth and British Minerals Ltd. The assets included a 44% interest in Zeravshan Gold. In November 2004, Avocet increased its equity interest in ZGC from 49% to 75%. In late July 2007, Avocet sold its equity stake in ZGC to China’s Zijin Mining. ZGC owns gold mining and exploration rights to a 300,000-hectare area near the Panjakent Township in the northern Sughd province.
