China's police arrested a Chinese female who is suspected of contract fraud in Entebbe, Uganda on Wednesday night.

Yu Youjing, 40, is arrested in Uganda on July 2, 2014. [File photo]

Yu Youjing, 40, was the manager of Zhejiang Baige Import & Export Ltd. Co. and left the country in February with a large amount of illegal money.

She is suspected of contract fraud totaling more than 50 million yuan (US$8.3million) and received more than 100 million yuan in loans (US$17 million) from a few banks by using mortgages on her firm, guarantee institutions and other private companies.

She defrauded more than 50 creditors in total, and some of them faced bankruptcy after she fled. One of the largest creditors is a company from Zhejiang Province that offered more than 57 million yuan as financial support for Yu's mortgage, an insider from Yu's hometown said.

Yu's disappearance was discovered by one of the banks. The local government set up a team to investigate the case in February and confirmed her crime. But the exact amount of fraud money and the reason she ran away were unknown.

On June 4, the Ministry of Public Security released a red bulletin about Yu to the international police agency Interpol and found some clues on June 30 in Uganda.

The Chinese police have brought Yu back to China.

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