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Costly, 1.6-million yuan chandelier shines light on monopoly
By Li Luxiang |
July 27, 2009, Monday
|
Print Edition
Print Edition
IT is reported that a chandelier in Sinopec's office in Beijing is worth 12 million yuan (US$1.7 million).
China's second-biggest state-owned oil company says, however, that it is only worth 1.56 million yuan.
Is it all right to pay 1.56 million yuan for one flashy piece of decoration?
Last year urban income in the Beijing area averaged 44,715 yuan, while rural residents there made only 10,747 yuan on average. Most residents greeted these income statistics with disbelief, not realizing that they were making so much.
But for the oil giant, the money is real.
Due to Sinopec's monopoly status and generous government subsidies, it ranks the 9th in the 2009 Fortune Global 500.
Last year, Sinopec complained about the soaring oil prices, and the government gave it 50.3 billion offhand.
Ex-chairman of Sinopec Chen Tonghai got a suspended death penalty last week for taking US$28.7 million in bribes.
Chen reportedly spent 40,000 yuan of company funds on an average day of work-related socializing.
When questioned, Chen was contemptuous. "What's the big deal about spending one or two million a month? Sinopec pays 10 to 20 billion a year in taxes! If you don't know how to spend money, you don't know how to make money either."
Chen may be telling the truth.
Given the preferential policy treatment and generous government subsidies, big state-owned companies enjoying monopolies should have a better sense of social responsibility.
We have no lack of checks and balances and regulations, internal and external, meant to prevent these "big earners" from wasting their (or ours) money, but apparently all these mechanisms failed in the case of Chen and the chandelier (and many other things).
Unless more people are made to pay for occasional scandals, we will probably hear more about other Chens and other chandeliers.
China's second-biggest state-owned oil company says, however, that it is only worth 1.56 million yuan.
Is it all right to pay 1.56 million yuan for one flashy piece of decoration?
Last year urban income in the Beijing area averaged 44,715 yuan, while rural residents there made only 10,747 yuan on average. Most residents greeted these income statistics with disbelief, not realizing that they were making so much.
But for the oil giant, the money is real.
Due to Sinopec's monopoly status and generous government subsidies, it ranks the 9th in the 2009 Fortune Global 500.
Last year, Sinopec complained about the soaring oil prices, and the government gave it 50.3 billion offhand.
Ex-chairman of Sinopec Chen Tonghai got a suspended death penalty last week for taking US$28.7 million in bribes.
Chen reportedly spent 40,000 yuan of company funds on an average day of work-related socializing.
When questioned, Chen was contemptuous. "What's the big deal about spending one or two million a month? Sinopec pays 10 to 20 billion a year in taxes! If you don't know how to spend money, you don't know how to make money either."
Chen may be telling the truth.
Given the preferential policy treatment and generous government subsidies, big state-owned companies enjoying monopolies should have a better sense of social responsibility.
We have no lack of checks and balances and regulations, internal and external, meant to prevent these "big earners" from wasting their (or ours) money, but apparently all these mechanisms failed in the case of Chen and the chandelier (and many other things).
Unless more people are made to pay for occasional scandals, we will probably hear more about other Chens and other chandeliers.
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