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325 Starting Lu Corporation\'s Downfall - Part 4

Wednesday, continued …

Yao Tan continued speaking, "However each of us, and the companies that we represent, have for a period of time had significant concerns about involvement with Lu Corporation.We have all found, particularly in relation to property development projects where we have been involved.Some of us have seen smaller companies bullied and manipulated into forcing Lu Corporation to becoming involved in the projects."

"Without naming which companies, two of us have been informed by different contractors involved in projects that Lu Corporation informed them that unless they ensured that Lu Corporation was the lead partner in developments, Lu Corporation would destroy them.In one case, again the development will not be confirmed, Lu Corporation used such tactics to become the lead developed without the risks for the project, and yet for the management of the development continue to receive fifty percent of its profits."

"Such tactics, while not common have been tolerated as a business tactic as ultimately the position that companies such as those which all of us here represent have made a decision.Business wise we could have refused to submit to their actions, but there were numbers of smaller companies involved, who neither had the power or the ability to survive what Lu Corporation would do to them.They were companies and businesses that had some importance to other projects where they were involved in with us, separate from those involving Lu Corporation."

"Being good corporate citizens, means that while we will compete and strive to achieve our corporate goals, we will not use the power that we have due to our size or expertise in areas to destroy others.Lu Corporation, and its CEO have demonstrated in the recent past the tendency to do so, which has concerned us all in different ways."

"These concerns, had prompted each company or group represented here prior to Madam Hou\'s assault to conduct our own investigations regarding our involvement with Lu Corporation on various projects.Some of those preliminary investigations resulted in further detailed investigations in various companies, which we will not name, which resulted in the conclusion that Lu Corporation was engaged in commercial spying, either through placing people loyal to in into positions within our companies or through intimidation and blackmail."

Yao Tan paused for a few seconds to let the impact of what he had to say sink in.He could see, in some of the members of the press complete and utter shock.Here he was on behalf of a number of companies exposing tactics of Lu Corporation to gain dominance in areas.

He then continued "For each of the companies that we represent the tipping point for our involvement in projects with Lu Corporation was the assault on Madam Hou, given the involvement of the then Vice-CEO of Lu Corporation.We cannot and will not condone or sanction violence towards women in any form."

"While it is possible understand Madam Lu perceiving a threat to her relationship, in light of her pregnancy, there is no justification for her or Mr Lu\'s actions.As a result each of our companies separately have determined from a date that we will each announce, going forward we will not have an involvement with Lu Corporation, projects involving them, or companies that commence new involvements with Lu Corporation."

"For some of us in projects where Lu Corporation lead company and the project agreements allow we will be serving notices on Lu Corporation headquarters terminating or involvement in the projects.If it requires is to take a loss we will do this, but where there is the ability we will be requiring Lu Corporation to immediately purchase out our interest in the development."

"While we will not demand that all companies involved in those projects immediately terminate their involvement, we will urge them if they can to get out of the contracts.That will not be possible for all of them, but to be clear going forward there will be a clear choice to make, Lu Corporation or each of the companies represented here and Hou Enterprises."

"And before any members of the press present put words in my mouth, or that of anyone else present, we are not speaking for Hou Enterprises.It is the view of those companies which we represent that it is in each of our interests that we disassociate ourselves from Lu Corporation, which means we are aligning with Hou Enterprises.I suspect that Hou Enterprises themselves will release their own statement about this in the future."

"Members of the Press, I will not personally, or on behalf of XF International be taking questions about this matter.XF International have agreed to three separate projects with various companies that are represented here, and we will be allowing them to speak.Additionally on Monday next week we will hold a press conference at our headquarters about two separate projects involving companies not represented here."

"The only other information we will provide to you, will be the time of the press conference which is still being finalised.While I am about to leave, I understand that Vice-CEO Ling from Chen Corp needs to leave very soon.I otherwise will be turning over the microphone to those present, and they can advise you as to their individual actions and details as to any future press conferences and whether they will take questions now."With that Yan Tan turned around and noticed there were eight heads shaking.

"Just to be absolutely clear, none of the companies here will be will as from today continue to collaborate with Lu Corporation in any way shape or form in any project.We understand that in some respect some of us may suffer losses from it, it is a decision about each of our companies being a good corporate citizen of this country and not condoning violence, blackmail, intimidation and in some respects corporate espionage."