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China’s SOEs ordered self-inspection on hidden rules (2)

(People's Daily Online)

08:17, August 07, 2012

Several railway industry insiders revealed that domestic process of bidding for high-speed railway projects is a mere formality as the contract winner had already been chosen before the bidding even starts.

According to the NAO report, nine companies subcontracted projects worth 312 million yuan without the permission of project proposers, and a few construction companies subcontracted projects to unqualified companies, which violated Chinese bidding law.

The Discipline Inspection Committee demands serious investigation into and severe punishment for corruption and bribery as well as other illegal acts for personal gain during the process of bidding for and undertaking projects. The five central SOEs are ordered to take effective measures to rectify their illegal or immoral market competition practices, such as bribery, illegally subcontracting projects, and illegally transferring or lending qualification certificates, through self-inspection and cross inspection of the railway projects they undertook.

Source: Beijing News

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