Heads will roll as local Chinese government opens investigation

It seemed like a good idea at first, maybe even revolutionary, but like most good ideas with no follow through, the elevated bus that was being developed in China appears to have been nothing more than a scam. According to local newspaper Southern Metropolis Daily, Chinese authorities have opened up an investigation on the people behind the “Transit Elevated Bus” for alleged illegal fundraising.

The report also says that over 30 people connected to the capital-raising platform Huaying Kailai have been detained and are under investigation. This comes after 72 investors in the project filed lawsuits against the company, which was able to raise over 9 billion yuan, or roughly around $1.3 billion, since the project’s highly publicized debut in Qinghuangdao last year. Apparently, the promise of a technological revolution on Chinese roads quickly devolved into suspicion about the company’s real agenda. Design firm Autek learned quickly about the veracity of the company after having to foot the bill for the millions spent working on the bus. Things got worse when the test track that was used in the unveiling of the elevated bus was left on the road with seemingly no intention of getting packed up. Ultimately, the local government of Qinghuangdao ordered the tracks be destroyed and the test bus sent to a parking garage, presumably to collect dust for the foreseeable future.

Continue after the jump to read the full story.

The price of promising too much without delivering comes at a huge cost

Chinese authorities have already taken steps to see to it that those responsible for how badly the project has been managed will be made accountable for their actions

There’s a part of me that really wished that elevated bus project, ambitious as it was, was going to push through. The concept was actually intriguing, and if executed properly, it could’ve worked in alleviating traffic. Sure, it was going to cost a lot of money, but less important things have been built more extravagantly. And if the right people were backing the project, it could’ve worked.

Sadly, that part about the “right people” doesn’t appear to be true at all. Chinese authorities have already taken steps to see to it that those responsible for how badly the project has been managed will be made accountable for their actions. Apparently, all those lawsuits against the Transit Elevated Bus were enough to convince authorities to take action in recovering the funds from the beleaguered company. Whether it’s able to get all that money back – an estimated $1.3 billion – is another matter entirely. I don’t think it’s going to happen considering the financial trouble the company is already in. That’s yet another stain on this once-promising story that’s turned sour faster anybody anticipated. Hopefully, investors who lost their money in this reported scam get back whatever they can. And as for those responsible for stealing all that money, I hope they’re made accountable for whatever crimes they’re found guilty of.

China's Elevated Bus Project Was A Scam After All
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The company was able to raise over 9 billion yuan, or roughly around $1.3 billion, since the project’s highly publicized debut in Qinghuangdao last year

As for the project itself, it was exciting while it lasted. An elevated public transport system that could help solve real-world traffic issues would’ve been a game-changing evolution. But, I suppose it’s not meant to be, at least not yet. All because some people thought they could promise the world, only to deliver nothing at all. Goodbye, for now, elevated public bus transit system. You were exciting for a fleeting second, but now your time’s up and it’s back to the drawing board.

Source: Sina

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