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Ministry orders train maker to respond to scam allegations
By Wang Qingchu |
March 6, 2012, Tuesday
|
Online Edition
Online Edition
THE Railway Ministry has ordered a State-owned train manufacturer to respond to allegations that its bullet trains were furnished with equipment brought at prices much higher than market rates.
The China South Locomotive & Rolling Stock Corporation (CSR) has been told by the ministry to respond to questions about its high-cost trains, Minister Sheng Guangzu was cited by today's China Youth Daily.
An investigative report in the Century Weekly last month revealed a purchase list of luxury parts for the CRH2 bullet trains manufactured by CSR and hinted at behind-the-scene deals and corruption.
The magazine said the cost of a single seat was about 30,000 yuan (US$4,757) and a double seat 40,000 yuan, while the price of a VIP seat soared to 160,000 yuan. Similar products by other manufacturers are two-thirds cheaper.
The two companies that won the bids to supply seats to CRH2 bullet trains "were not heard of before," said the report.
The China South Locomotive & Rolling Stock Corporation (CSR) has been told by the ministry to respond to questions about its high-cost trains, Minister Sheng Guangzu was cited by today's China Youth Daily.
An investigative report in the Century Weekly last month revealed a purchase list of luxury parts for the CRH2 bullet trains manufactured by CSR and hinted at behind-the-scene deals and corruption.
The magazine said the cost of a single seat was about 30,000 yuan (US$4,757) and a double seat 40,000 yuan, while the price of a VIP seat soared to 160,000 yuan. Similar products by other manufacturers are two-thirds cheaper.
The two companies that won the bids to supply seats to CRH2 bullet trains "were not heard of before," said the report.
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