Discipline watchdog accuses telecom firm executives of embezzlement

By Liu Xin Source:Global Times Published: 2015-6-18 0:28:01

Some senior executives of two major Chinese telecom companies have allegedly abused their authority in seeking rent and embezzled State-owned assets, according to the country's top disciplinary watchdog.The Communist Party of China Central Commission for Discipline Inspection (CCDI) published its feedback on its official website on the results of inspections into China Telecommunication Corporation (China Telecom), China Mobile Limited and seven other State-owned enterprises as another round of inspections concluded.

The feedback to China Mobile read that "the external cooperation projects are at a high risk of corruption, with family interests of some leaders nibbling and embezzling State assets."

As for China Telecom, CCDI said that some leaders in the company amassed massive personal wealth by exploiting the company's human resources.

In a rare move, the team also named the Shanghai and Beijing branch of China Telecom for violating Party disciplines by allegedly building and managing luxury private clubs.

CCDI sent an inspection team to another telecom giant, China United Network Communications Group Co Ltd (China Unicom), in February and said that some leaders or employees in key positions colluded with contractors and suppliers to exchange privileges for sex or money.

Feedback to all three telecom operators said that their Party organizations and discipline inspection departments failed to carry out proper supervision.

The CCDI has strengthened its inspection on State-owed enterprises and said that China's three oil giants share the same problem of having family members of senior executives involved in corruption and there were various types of rent-seeking in the energy enterprises.

"The three major telecom operators and other State-owned enterprises control a large amount of public resources. Enforcing the anti-graft campaign in these enterprises benefits the public and demonstrates the government's strong determination," Zhu Lijia, a research fellow at the Chinese Academy of Governance, told the Global Times.

As of May, more than 10 senior executives in the three major telecom companies have been investigated, according to China News Service.

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