A report into Birmingham City’s parent firm has revealed former chairman Carson Yeung was involved in £15 million worth of transactions without proper paperwork.
Majority shareholder Yeung carried out more than a dozen transactions between Birmingham City and himself in between 2007 and 2011 without the necessary documentation.
The latest revelations about Yeung, who is currently standing trial in a £60 million money laundering case in Hong Kong, came after the parent firm, Birmingham International Holdings (BIH), called in Shinewing Specialist Advisory Services to conduct a review.
READ MORE: {}
However, BIH says none of the transactions relate to the ongoing case against Yeung, which he denies.
A statement released by BIH reveals there were a total of 86 transactions between the company and Yeung during the period, of which 14 related to Birmingham City.
Shinewing said that there was a general pattern showing that funds received by the club from Yeung were not dealt with according to procedure in the Hong Kong Stock Exchange.
It states: “For funds allegedly received from Mr Yeung, most of them were remitted from third parties, and a general lack of documentation within the company showing the reasons behind or arrangement between Mr Yeung and funds paid to and received from third parties.
“While board minutes and letters of instruction from Mr Yeung were prepared for legal, statutory and compliance requirements, at the same time, there was lack of documentation on the commercial and ancillary aspects of the transfer of funds via, to and from third parties.”
Most Read
BIH says that the Shinewing report was overseen by directors who have since departed, and admits that not all of the documents requested were provided “due to the absence of accounting records and other supporting documentation”.
The KTC report is seen as a way to get BIH shares trading again, as they have currently been suspended for more than two years.
It identifies 31 areas for improvement at the parent firm, including confidentiality policies, risk assessment and employing a compliance officer to operate in line with the rules.