Manager of Chinese Solar Company Charged with Bribery for Product Approvals

A senior executive at the Chinese solar and battery inverter firm, Growatt New Energy, has been taken into custody after facing allegations of offering a $20,000 bribe to facilitate product approvals.

Guoxin Zhu, 39, was detained last week according to authorities and local reports. He appeared at the Brisbane Magistrates Court on Wednesday and is scheduled to return to court in a fortnight.

Zhu, identified by several media outlets as a manager with Growatt, was arrested while preparing to board an international flight in Sydney on July 24, as confirmed by the Queensland Police Service (QPS).

He stands accused of attempting to bribe “a Commonwealth public official” during a business meeting held in Camp Hill, Brisbane, in a bid to expedite the approval process for the company’s products by the governing body.

Immediate Reporting of Alleged Bribery

The official involved, believed to work for the Clean Energy Council, reported the alleged bribery without delay. A recent statement from the Clean Energy Council shared with Renew Economy remarked that it had “recently become aware of an incident linked to its Approved Products Program.”

“Each application to the program is evaluated against consistent requirements and processes,” the statement noted.

Undercover Operation Leads to Arrest

The Queensland police, in collaboration with the Australian Federal Police and the National Anti-Corruption Commission, conducted a two-week undercover operation dubbed Operation Yankee Borderlands, culminating in Zhu’s arrest.

Zhu has been charged with offering a secret commission to an agent and was transported to Queensland for his court appearance on July 27, where he sought bail.

Reports indicate that Zhu proposed to surrender his passport and check in with police as part of his bail bid; however, the request was denied, citing strong evidence supporting the charges and concerns that the Chinese national might attempt to leave the country if granted release.

Impact on Growatt’s Future

Shenzhen-based Growatt, which focuses on solar inverters and battery systems, is making its third attempt to secure a listing on the Hong Kong Exchange and will likely need to disclose these allegations to potential investors.

The company released its prospectus in June, revealing robust revenues, significant cash reserves, minimal debt, and fluctuating annual profits, primarily driven by growing demand for batteries, even as the solar inverter business faces a slowdown.