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Daiwa House suspects massive embezzlement at Chinese joint venture

OSAKA (Kyodo) -- Japanese home builder Daiwa House Industry Co. said Wednesday it suspects 1.42 billion yuan ($211 million) may have been embezzled by three employees at its joint venture company in China.

    The suspected embezzlement at the housing development firm, Dalian Dahezhongsheng Estate Co., by two executives and an accounting staffer surfaced after a different employee reported Tuesday that the amount of the company's money in the bank and that logged in its books did not match, Daiwa House said.

    The three employees could not be reached, and the joint company in the northeastern port city of Dalien is preparing to file a criminal complaint, Daiwa House said. The two executives sent from a joint venture partner in Dalien and the accounting staff are related, according to Daiwa House.

    The Japanese home builder said it will book half of the missing money as a loss if the company fails to collect it.

    Daiwa House suspects the missing money was transferred using internet banking from around 2015.

    Daiwa House has been considering dissolving the company in Dalien after the joint venture partner sold a property developed with Daiwa House without giving any notice last summer, according to officials of the Japanese firm.

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