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Punishment of steel executive sends out warning to SOEs

Updated: 2015-09-11 07:39
By Zhang Yi (China Daily)

The removal of a senior executive of Baosteel Group from his post for misusing public money and receiving gifts sends out a stern warning from the top anti-graft authority to other officials in State-owned enterprises.

Zhao Kun, deputy general manager of Baosteel Group, the parent of Baoshan Iron & Steel, was removed from his post in August for breaking austerity rules, including spending public money on extravagant receptions and having others pay for his games of golf.

According to a statement by the Central Commission of Discipline Inspection on Wednesday, Zhao used company money on exorbitant accommodations in villas when he attended company meetings in August and December 2013, and on sightseeing tours.

He spent nearly 50,000 yuan ($7,800) of company money on fancy receptions in June 2013 and March last year and was also found to have accepted expensive cigars from his subordinates six times since 2013.

The commission underscored that State-owned enterprises are not exempt from strict implementation of Party rules, noting that some senior executives turned a deaf ear to the leadership's repeated calls for anti-graft regulations and did not stop their wrongdoings even after they were urged to obey the austerity rules.

"Being a senior executive of a State-owned enterprise, Zhao ignored self-discipline, failed to fulfill his responsibility and jeopardized moral standards," the statement said.

The commission urged Party committees at State-owned enterprises to step up management and supervision of senior executives and earnestly apply Party discipline. It warned that it would impose stiffer penalties on those who have violated the "eight-point" frugality rules.

In addition, the Central Commission of Discipline Inspection announced on Thursday that it will publish on its website the results of inspections into 25 SOEs.

Zhao joined a long list of officials caught up in the anti-graft campaign launched since late 2012. According to the National Audit Office, more than 250 people in SOEs have been disciplined.

Fifty-six cases involving "serious violations of Party discipline and laws" have been handed over to anti-graft departments and law enforcement since the anti-graft campaign began in late 2012.


(China Daily 09/11/2015 page4)

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