Economy

SOEs asked to improve collective decision-making mechanisms

(Xinhua)
Updated: 2010-07-19 13:38

BEIJING - The Communist Party of China (CPC)'s discipline watchdog has ordered State-owned enterprises (SOEs) to improve their collective decision-making mechanisms to curb corruption and financial risk.

The CPC Central Commission for Discipline Inspection (CCDI) and the Ministry of Supervision said in a statement Sunday that SOEs should work out detailed procedures for decision-making mechanisms.

China said last week it would introduce new collective decision-making procedures for powerful and profitable SOEs.

All important decisions, appointment of key officials and executives, arrangements for major projects, and decisions concerning large amounts of funds must now be jointly decided by collective leadership, according to the new procedures.

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The CCDI has asked inspectors, organizational departments and state assets supervisory organs to enhance education, governance and supervision of relevant personnel.

In the statement, the CCDI vowed to "severely punish" those who violate the procedures.

The CCDI also ordered authorities to give full play to employees' and the public's supervisory roles for the timely uncovering of irregularities.

The statement highlights China's increased resolve to keep executives at its profitable SOEs under supervision.

Thirty-five senior executives at large SOEs -- such as former Sinopec chairman Chen Tonghai -- faced corruption charges last year. Thirty-one of them were involved in cases concerning an average 110 million yuan ($16.2 million).