Financial Corruption of the Owners of the Hilton Metrotown
In a July 14 press release Unite Here! Local 40 states:
"DSDL is owned by members of the prominent and politically connected
Cho family that founded South Korean conglomerate Hyosung Corporation,
the world's largest producer of spandex. DSDL's Chairman, Cho Wuk-rai,
was indicted for embezzling company funds from a Hyosung subsidiary and
later sentenced to prison. He received a
pardon the next year.
"DSDL's Chairman was convicted and sentenced to prison again in 2009
for setting up illegal loans between businesses he controlled which
eventually led to the bankruptcy of two publicly traded companies. Mr.
Cho received a special pardon by South Korea President Lee Myung-bak,
to whom Cho is related through marriage. In 2010, the
year after Mr. Cho received his second conviction, DSDL bought Hilton
Metrotown.
"Hilton Metrotown locked-out staff three months ago. The BC
Federation of Labour issued a boycott against the hotel which is losing
millions of dollars worth of current and future business as travel
restrictions ease. DSDL's hotels in Edmonton are also at risk of a
boycott. DSDL's failure to address the financial impact of the lockout
should
be cause for concern, particularly in light of the firm's corporate
history."
In reference to a July 7 letter sent to CWB by the union, the press
release states, "The letter asks whether CWB was aware of these
convictions or if DSDL ever disclosed this material information to the
bank. If CWB was informed, the union questions why the bank approved
the loan and whether they extended loans to DSDL's other Canadian
businesses, including three Edmonton hotels acquired in 2017 and
another in Quebec City acquired in 2019. [...] UNITE HERE is calling on
CWB to undertake a proper due diligence review of DSDL and to
re-evaluate whether lending to DSDL is worth the risk."
This article was published in
October 25, 2021 - No. 99
Article Link:
https://cpcml.ca/WF2021/Articles/WO08993.HTM
Website: www.cpcml.ca
Email: editor@cpcml.ca
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