Last month we reported that the over-hyped Trans Elevated Bus (TEB) was nothing more than a scam. The test site for the controversial project has now been demolished, and the monstrous bus has long been gathering dust.
In recent months, rumors have been swirling that the Beijing-based company behind the mega-bus had illegally obtained funds from the public. Beijing police have now arrested 32 employees of Huaying Kailai Asset Management Co. Ltd, the peer-to-peer financing company behind the TEB project. Bai Zhiming, the founder of Huaying Kailai, was among those detained by police, according to an announcement made on the Beijing Police Deptarment’s Weibo account on Sunday.
The company is suspected of illegally obtaining funds from investors, who were required to pay a minimum of RMB1 million (USD150,000) to invest in the project. Police are now encouraging investors to come forward with any information.
“The investors’ legal interests will be protected as much as possible, in accordance with the law,” the announcement read.
The 16-foot-tall bus was designed to carry up to 1,400 passengers. Because it would hover over other vehicles it would supposedly help ease traffic in Chinese cities like Beijing. The super futuristic looking bus received all sorts of attention from local and international media after the project was unveiled last year.
The TEB-1, a single-car model of the bus, was ultimately built and taken for multiple test runs from August to October of last year. However, just a few days after the first test drive, the TEB became embroiled in all sorts of controversy. The supposed city-backed “test drive” was actually a private event held by the company, not the city. It was also revealed that the project was run by Huaying Kailai and that the company was suspected of illegally obtaining funds from the public.
It is now believed that Huaying Kailai raised roughly RMB4.9 billion (USD721 million) in TEB-related finances, Sixth Tone reports. However, numerous investors are reporting that they have not been paid back.
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