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China Daily Website

China regulates officials working in SOEs

Updated: 2013-10-31 10:00
( Xinhua)

The CPC has paid great attention to the management of officials working for enterprises. During a rectification campaign in 2004, more than 8,000 Party and government officials above county-level were ordered to give up their part-time company posts.

Wednesday's rules expand the supervision network to cover retired officials or those under county level, said Prof. Xin Ming of the Party School of the CPC Central Committee, adding, "Negative social influence has been created due to officials illicitly working for companies."

In 2011, there were 34 retired senior government officials employed as independent directors by the top 50 companies listed on China's Shanghai and Shenzhen stock exchanges, and nearly 1,600 former officials worked for A-share companies, nearly 500 of whom were independent directors, a survey showed.

Xinhua reporters found that currently seven of 48 independent directors at the top 10 A-share companies by market value are retired senior officials.

Former officials employed by companies have mainly worked in government departments related to auditing, taxation, finance, law and human resources.

In July, Sinotruk Hong Kong Ltd. announced the appointment of three former senior officials as its independent directors. They were promised annual pay of 180,000 yuan (about $29,000).

The three officials, including the former governor of east China's Shandong province and the former deputy head of the State Taxation Administration, resigned amid public and media queries on Aug. 14, 20 days after their appointment.

The public was worried about possible corruption and unfair market competition due to their influence.

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