Xinhua recently reported on an "issues list" that the Central Commission for Discipline Inspection (CCDI) of the Chinese Communist Party published on its official website. The “issues list” dealt with 26 central government owned companies. The CCDI identified three major “black holes” in the operations of these companies. The first was that half of the companies did not follow the right procedures in the procurement bidding processes – a large number of corrupt activities were found. The second “black hole” was that the management of overseas investments had become the “hardest hit region.” A lack of regulation and monitoring contributed heavily to the loss of state-owned assets overseas. The third “black hole” that the CCDI identified was the unlawful transfer of company wealth to relatives of those on the management teams. The corruption situation in these companies demonstrated a trend towards a “family operation” model. The CCDI called for deepened reforms to prevent turning state-owned assets into personal gold mines.
Source: Xinhua, June 20, 2015