COSCO and China Shipbuilding Industry Corporation (CSIC) have been found to be guilty of corrupt practices following inspections by China’s Central Commission for Discipline Inspection (CCDI), on 26 February and 28 April 2015.
According to the report by the inspection team, released on 12 June, senior staff have used relatives to contract start-up companies with COSCO related business and it was also found that management accepted rebates and commissions via third-party businesses.
Tong Yangcheng, leader of the central inspection team, also criticised COSCO for serious corruption issues in its joint ventures, and discipline violations of some senior executives, such as entertainment spending using company funds.
Ma Zehua, president of COSCO group, has promised that the company will make effective plans to correct the issues, and punish the employees who have violated anti-corruption rules.
Meanwhile, CSIC, one of the two largest shipbuilding conglomerates in China, was also found to have corruption and other issues during the inspections by the CCDI.
Related news:China authorities discipline senior executives from China Shipping, COSCO
Tong, who also led the inspection at CSIC, said that corruption is serious in various departments of CSIC. Some of these departments have chaotic financial management, and executives were found to abuse power for personal gains.
Hu Wenming, chairman of CSIC, stated that the group will further strengthen its financial management, and any misbehaviour will be punished.
Beijing’s anti-corruption campaign targets state-owned enterprises (SOEs), and about 20 senior officials from 26 SOEs were probed during inspections by CCDI. Three senior executives from CSIC and one from COSCO were disciplined following the inspections and report.
The CCDI has vowed to root out corrupt heads of state-run companies, no matter how difficult the task.
This post was sourced from IHS Maritime 360: View the original article here.
