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China’s SOEs ordered self-inspection on hidden rules

(People's Daily Online)

08:14, August 07, 2012

The Discipline Inspection Committee of China’s State-owned Assets Supervision and Administration Commission (SASAC) said recently that it would unleash a one-month rectification campaign from July 20 covering five central state-owned enterprises (SOEs) – the China Railway Engineering Corporation, China Railway Construction Corporation, China Communications Construction Company, Power Construction Corporation of China, and China Energy Engineering Group.

The campaign is mainly directed at three types of illegal practices: using illegal means such as collusive tendering, tender rigging, and kickbacks to win project contracts, illegally transferring or subcontracting projects, and illegally transferring, lending, or allowing others to use the company’s qualification certificates to undertake projects.

Most of the five central SOEs and their subsidiaries have participated in railway projects, and some engaged in illegal tendering and subcontracting in the Beijing–Shanghai High-Speed Railway and other projects, the National Audit Office (NAO) said in a report.
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