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China / Government

20 SOE bosses held on graft charges

By Zhang Yi (China Daily) Updated: 2015-06-18 07:42

Central Commission for Discipline Inspection reveals results of latest round of inspections

The top anti-graft authority has announced the results of inspections of 15 State-owned enterprises and given details of corrupt practices by senior executives.

The Central Commission for Discipline Inspection set up a section of its website on Tuesday to publish the results of its operations and give the public easy access to information about the latest initiatives by its teams.

The commission began the year's first round of disciplinary inspections at the end of February, targeting 26 SOEs, almost double the number visited during previous inspections. Around 20 senior managers from these SOEs have been held on corruption charges.

Li Wusi, head of the inspection team sent to China National Petroleum Corp, said efforts to combat corruption in the company continue to face challenges. Tipoffs from whistleblowers have been handed over to the appropriate departments at the commission, the Personnel Department of the Communist Party of China and the government's top planning body.

"Some corrupt officials still get promoted, some executives give projects to their relatives and friends, and some are guilty of misconduct involving overseas investments," Li said.

"In addition, problems such as using public funds to pay for personal tourism, shopping and allowances are rampant."

Dong Hong, the head of a team sent to China Telecommunications Corp, said some executives developed close connections with wealthy and powerful individuals and worked with them to embezzle national assets, while some outsourced contracts and took bribes from other companies.

He said breaches of Party discipline remain a major problem, even though members have been urged to follow the principles issued in late 2012 when the country launched its sweeping anti-graft campaign.

Thirteen teams were sent to the giant corporations, with each reviewing two companies, including China National Petroleum Corp, China National Offshore Oil, China Huaneng Group, State Grid Corp of China and China Mobile Communications.

Companies in the oil and refinery sector are among those most affected by corruption, with five senior managers held from the country's three largest oil enterprises.

Liao Yongyuan, former vice-chairman of PetroChina and general manager of its parent company, CNPC, was placed under investigation on March 16 on suspicion of committing "serious violations of the law" - a euphemism for corruption. The CCDI announced that he had been expelled from the Party on Monday.

The inspection teams were set up in 2003, with personnel drawn from the CCDI and the Party's Organization Department. They are authorized to consult files and records and receive petitions and letters reporting corruption from the public. An inspection mechanism was established as an internal supervision method by the Party in the same year.

On Wednesday, the CCDI announced an investigation into Long Zenglai, former head of China Investment Securities.

Long, who was the company's Party chief and CEO, was found to have spent 400,000 yuan ($64,400) of public funds on extravagant meals and nearly 35,000 yuan on golf from January 2013 to May this year.

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