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April 16, 2011

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Sinopec unit GM felled by booze deals

Sinopec has suspended the head of its Guangdong unit pending an investigation over claims that the branch spent huge sums on expensive alcohol.

The suspension of Lu Guangyu, Sinopec Guangdong's general manager, was announced at an internal meeting yesterday afternoon, according to Xinhua news agency.

Sinopec, the state-owned refining giant, sent an investigation team from its Beijing headquarters to Guangzhou, capital of Guangdong Province, on Thursday after photocopies of drinks invoices appeared on the Internet.

The photocopies were first posted on the popular Tianya forum on Monday, alongside claims that the Guangdong branch spent 2.59 million yuan (US$396,400) in September on hundreds of bottles of fine wine and liquor, including Kweichow Moutai and Chateau Lafite Rothschild, which were used as gifts or for receptions by Lu during the Mid-Autumn Festival.

The online publication of the drinks invoices triggered public anger, especially at a time when China's fuel prices are at record-high levels. Sinopec has long been lobbying for higher fuel prices.


 

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