B.C. log exporter sues Chinese owned supplier over bad shipment, failure to pay federal deductions

By Derrick Penner
The Vancouver Sun
October 13, 2017
Category: Business & Politics
Region: Canada, Canada West

British Columbian log exporter Northcrest Energy Corp. is suing the B.C. subsidiary of a Chinese company over allegations the company duped the exporter into financing its operations to supply logs to a customer in China and delivered inferior product. In a statement of claim filed with the Supreme Court of B.C. in New Westminster, Northcrest president Baljit Gill said representatives of the supplier, Richmond-headquartered Canada Forest Industrial Group Ltd., led her to believe that it was a substantial company with deep financial resources. In Aug. 2016, Gill said in the statement that she signed a contract to buy logs from Canada Forest for export to a company in China in a transaction that would see Northcrest pay Canada Forest’s employees and subcontractors for credits toward the purchase. Under those terms, Gill said in the statement that she paid $3.2 million for payroll and camp services, but hasn’t received credit for that.

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