Graft noted in state-owned companies
Print Edition
EVIDENCE of corruption was found during inspections held last year of state-owned enterprises, which some people hope might now inspire reform in the sector.
The Communist Party of China’s Central Commission for Discipline Inspection (CCDI) on Thursday began publicizing the results of inspections that targeted major SOEs.
Issues they found include leaders of energy company Shenhua Group accepting bribes, and officials from China Unicom “colluding with contractors or suppliers, using their power to seek money or sex.”
Other issues including the trading of official positions, wining dining at the public’s expense, and helping relatives open businesses and obtain illegal profits were discovered in China Huadian Corp, Dongfeng Motor Corp and other firms.
For the first time, the watchdog posted pictures online of its teams notifying heads of the firms of the results.
The fifth plenary session of the 18th CCDI, which ended last month, set the task of inspecting all major SOEs this year. Inspections held over the past two years of 14 major SEOs led to the fall of more than 70 executives.
Investigations into officials implicated in the latest round of inspections have already began. As of January 7, 12 officials in five companies were being probed for suspected “serious law and discipline violations” or “duty-related crime,” euphemisms for corruption.
The list includes Hua Zeqiao, former vice president of China Shenhua Energy, Ren Yong, assistant general manager of Dongfeng Motor; and China Southern Airlines’s vice general managers Chen Gang, Xu Jiebo and Zhou Yuehai.
A CCDI official said the inspections showed how rampant the graft problem is.
Liu Junhai, a professor at Renmin University of China Law School, said the anti-corruption campaign is being strengthened in a bid to accelerate the reform of SOEs.
But executives and officials are using all means to hold onto their power, he said.
Gao Bo, deputy secretary-general of the Clean Government Studies Center under the Chinese Academy of Social Sciences, said the anti-corruption drive targeting SOE officials will help push forward China’s ongoing and broader overhaul of these companies and the economy.
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