Sino-Forest gives itself a clean bill of health

Sino-Forest yesterday confirmed its own existence after a four-month investigation by an independent committee that has cost around $35 million and claims to refute the accusations levelled by short-seller Muddy Waters in June this year.

“The Independent Committee report verifies the company’s stated cash balances, confirms registered title or contractual rights to the company’s stated timber assets, as well as the book value of these assets,” it said in a statement accompanying the report. “We can categorically say Sino-Forest is not the near total fraud’ and Ponzi scheme’ as alleged by Muddy Waters.”

However, such confidence is hardly supported by the materials Sino-Forest released yesterday. Indeed, much...