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Nation
Print Edition> Nation
UPDATED: March 9, 2015 NO. 11 MARCH 12, 2015
War on Graft
Efforts to eliminate graft are off to a good start but still have a long way to go
By Yin Pumin
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FALLEN OFFICIALS: Five officials from the State Grid Corp. of China are investigated for alleged corruption problems in 2014 (CFP)

With the active participation of the people, the Communist Party of China (CPC) has been doubling down on the fight against corruption, putting checks on the spread of undesirable work styles and corruption.

In 2014, a total of 232,000 officials were punished by China's disciplinary agencies, representing a 30 percent increase from the previous year, according to the work report delivered by Wang Qishan, Secretary of the 18th CPC Central Commission for Discipline Inspection (CCDI), at the Fifth Plenary Session of the 18th CCDI meeting, which was held on January 12-14.

The handling of cases implicating corrupt high-ranking officials, such as Zhou Yongkang, Xu Caihou, Ling Jihua and Su Rong, showed the central leadership's determination to punish corruption and strictly manage the Party, Wang said in the report.

Disciplinary officials have focused on pressing issues such as forming factions and cliques, exchanging gifts bought with public money, banquets, travels, entertainment activities and ceremonies paid with public funds.

"The situation has improved, but the root of the problem is still there. The more unscrupulous will try to find ways to continue, and our mission to prevent re-occurrence will be arduous," Wang said, adding that the Party "cannot afford to lose" the war against corruption.

While calling for harsher punishment, wise use of personnel, improved regulations and strengthened management, Wang urged central disciplinary groups to expand their coverage and increase the frequency of inspections to effectively uncover law violations in Party and government departments, state-owned enterprises (SOEs) and civil service institutions.

"Inspections should focus on a specific case, person, unit, project or fund, and carry out the task with clear goals, flexible actions and precise detection," Wang told inspectors, stressing that failing to spot violations or report to higher authorities will be viewed as a negligence of duty.

According to Wang, the CCDI plans to increase scrutiny over SOEs in 2015 and pay more attention to uncovering misconduct by officials in key positions who meddle in construction projects, land leasing, state property management, using office power to seek personal benefits and other forms of corruption and negligence.

Targeting SOEs

On February 11, the CCDI pledged to direct the country's anti-graft campaign toward China's largest state owned enterprises (SOEs).

The first round of the effort will cover 26 SOEs, including some of the nation's largest and most high-profile energy corporations. They include China National Petroleum Corp, China National Offshore Oil Corp, China Huaneng Group, State Grid Corp. of China, China Power Investment Corp. and China Mobile Communications Corp. Thirteen teams of disciplinary inspectors were dispatched to these companies on February 24.

SOEs have played an important role in China's economy and made great contributions to economic and social development, Wang said. However, problems have been uncovered in the administration of many SOEs through inspection, audits and petitions.

"Some officials disobeyed the law and pursued promotion through bribery. Problems have also been found in candidate selection, selling and buying positions and the forming of cliques. Some officials abused their power and sought benefits for their family members," Wang said.

Inspectors have been told to find new ways to check up on key people and issues, spotting problems of universal significance in conduct, personnel selection and appointments that go beyond mere corruption.

Since 2013, authorities have organized five rounds of anti-graft inspections of ministries, provincial governments, SOEs and public institutions. The inspections revealed power-for-money deals between Party and government officials and heads of SOEs.

On February 5, the CCDI started to make public the results of its third round of inspections in 2014, targeting major SOEs.

Issues they found include leaders of Shenhua Group, the largest state-owned coal-based integrated energy company, accepting bribes in the coal trade, and officials with China Unicom "colluding with contractors or suppliers, using their power to seek money or sex."

One of the largest companies involved is state-owned China National Petroleum Corp., the country's largest oil and gas producer and supplier, with a market capitalization of 2 trillion yuan ($325.2 billion). Forty-five executives and employees from the company are under investigation on suspicion of corruption, bribery and bribe-taking.

Other issues including buying and selling of official positions, wining and dining at public expense, and helping relatives open businesses and obtain illegal profits were discovered in China Huadian Corp., Dongfeng Motor Corp. and other enterprises.

Previous inspections over the past two years covered 14 major SEOs, which led to the fall of over 70 executives in 2014.

In fact, investigations into officials implicated in the latest round of inspections had begun way before the inspections' results were made public. As of January 7, 12 officials in five companies were being probed for suspected "serious law and discipline violations" or "duty-related crimes."

The list included Hua Zeqiao, former Vice President of China Shenhua Energy Company; Ren Yong, assistant general manager of Dongfeng Motor Corp.; and China Southern Airlines's vice general managers Chen Gang, Xu Jiebo and Zhou Yuehai.

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