Wednesday 11 February 2015

China’s State-Owned Enterprises Face New Inspections In Crackdown On Graft

Wang Qishan said the probe extension will cover all major state companies this year.

Top graft-buster mainland has announced a round of inspections in 26 SOEs in an extension of the repression of the Communist Party corruption.

The probe extension would cover all major SOEs and financial firms this year as some companies showed "remarkable" disciplinary problems, said Wang Qishan, who heads the party's efforts to combat corruption.


Disciplinary problems were common in state enterprises, where some leaders had bribed their ways up the ladder match, told investigators graft yesterday. "Some officials have used their power to buy high and sell low and benefited bids, to benefit their relatives, children and themselves."

Wang, member of the Politburo Standing Committee, heads the Central Commission for Discipline Inspection and the Central Leading Group for Labour Inspection.

The probes in state enterprises and government agencies have regularly occurred since President Xi Jinping came to power in late 2012.

The first round of inspections will include 13 teams audit 26 SOEs. The teams also receive requests from the public.

Team members will be selected from a set of names of different government departments submitted by the Central Committee. Each team will be headed by a level of active or retired ministry.

Companies to be inspected include: China National Petroleum Corporation, China National Offshore Oil Corporation, China National Nuclear Corporation, Sinochem Group, China Huaneng Group, and State Grid Corporation of China, China Ocean Shipping Company - known as COSCO Group - China Datang Corporation, China Telecom, China Mobile and Shanghai Baosteel Group Corporation.

In previous inspections, the commission has accused senior officials of China State Shipbuilding, and relatives of the best paintings in the automaker Dongfeng Motor, to conduct illegal business.

Inspectors said they unearthed buying and selling positions in power generator China Huadian and poor controls that caused the loss of state secrets. Inspectors cite failures discipline to state broadcaster Radio International China.

In November, anticorruption officials said they would shift their attention back to SOEs.