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February 11, 2012

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Stories on DaVinci Furniture mostly true

NEWS reports by state television that ripped the quality and place of origin of some of DaVinci Furniture's products are confirmed to be "basically true," China's General Administration of Press and Publication said in a statement yesterday.

The statement said the administration's investigation shows some of DaVinci's furniture does "have quality problems," but it also said Li Wenxue, the China Central Television reporter who covered the story, is an "unlicensed journalist" who has "illegally participated in news reporting."

According to the statement, the administration carried out investigations into CCTV after furniture maker DaVinci reported to it that two news reports by the TV station were totally "incorrect." The two TV news reports said products sold by DaVinci were sent to Italy or just to Shanghai ports and then back so they could qualify for import certificates. The programs put DaVinci at the center of a national scandal and seriously hurt its sales.

No payoff for reporter

DaVinci also reported to the administration that the reporter "has used the news programs to blackmail them." Previous media reports said DaVinci claimed that it paid about 1 million yuan (US$158,755) to Li to entice him to stop negative reporting about the company.

But the administration's probe shows that some furniture sold by DaVinci are not qualified. Some are originally made in China, not imported, and the decorations on some furniture are made of resin materials instead of solid wood roots as the company boasted, the statement said.

The administration said it did not find that Li had blackmailed or received any money or rewards from the company during the investigation. DaVinci has paid 1 million yuan as "public relations fee" to the bank card account of a PR company employee who was allegedly asked to deliver it to Li, but the money was later transferred back to the PR company's account, the announcement said. The man in charge of the PR company told the administration that the money was paid to the company as the PR fee and it had nothing to do with Li.

Meanwhile, the administration criticized Li, saying he interviewed officials whose identities were not verified and reached a conclusion that was not "accurate enough."




 

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