Anti-corruption probes uncover misconduct at six Chinese state-owned enterprises
Inspectors say problems were discovered at all the groups investigated in the latest round of official checks, including cases of nepotism and misuse of funds
PUBLISHED : Friday, 06 February, 2015, 3:27pm
UPDATED : Friday, 06 February, 2015, 4:40pm
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Anti-graft officials outline their findings to staff at the coal producer Shenhua. Photo: SCMP Pictures
China’s anti-corruption agency has released details of inspections into six major state-owned enterprises and organisations and said it found problems in all of them, ranging from the misuse of funds to nepotism.
Inspectors said a series of problems involving senior officials were discovered at the telecommunications company China Unicom.
These included using the business to give bosses’ families “economic benefits” and “trading sex for power” although no details were given of the allegation.
Major problems were found at the coal and power companies Shenhua and Huadian, the inspectors said.
These were linked to acquisitions of assets and approval rights for mining.
Huadian was also found to have violated rules for transferring state assets to private enterprises.
Some departments at China Radio International had used funds given by the state government for purposes they were not originally released for, the inspectors said.
Some executives at Dongfeng Motor were also accused of abusing their position to help their families financially.
China State Shipbuilding Corporation made acquisitions which exceeded its budget, flagging a potential corruption problem, the report said.
The anti-graft agency said last month that major state-owned enterprises were to be one of its main targets in the coming year.
State asset regulators punished 3,670 officials at state enterprises for graft last year, Xinhua reported last month, more than twice as many as in 2013.
The inspections into the six firms began in November and took about 70 days to complete.
The agency also released photographs of inspectors briefing managers about the results of their inquiries in their latest reports.
