Financial scandal hits Suntech profits

Suntech Power Holdings (NYSE:à‚ STP) have concluded that a minority shareholder defrauded the company after an investigation.

The alleged rip off of the company’s solar development fund has led the China based solar company to announce a possible $60-80m reduction in profit for the 2010 year.

Solar panels
Reuters reports that the scandal involves Luxembourg-based investment fund GSF Sicar, a solar power plant developer 80 percent owned by Suntech and 10 percent by Zhengrong Shi, who founded Suntech in 2001.

The allegation relates to a minority shareholder, GSF Capital PTE, which owns the remaining 10 percent of the fund.

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