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Corruption claims force internal probes at S.O.E.s

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Toh Han Shih

A number of major mainland state-owned enterprises (SOEs) have been ordered to conduct internal investigations into claims that corruption might have affected up to a dozen railway projects.

Construction problems have surfaced recently in many rail projects across the country, according to China Economic Net, a mainland business news portal.

Regulatory authorities have ordered the companies to fix problems on 12 rail lines. The firms have also been temporarily banned from bidding for further railway contracts.

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The 12 problem lines include the Wuhan-Guangzhou high-speed railway, which will link up with Hong Kong in 2015; and the NingboTaizhou-Wenzhou high-speed railway, where a deadly high-speed-train crash occurred in July last year.

Zheng Tianxiang, a transport professor at Sun Yat-sen University in Guangzhou, said the pace of high-speed-rail development had been too rapid, 'so there will be quality problems'.

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'Systemic problems and corruption have not been resolved. With inadequate supervision, it's easy for problems to arise,' he said.

Richard Di Bona, who runs a Hong Kong transport consultancy, said it was likely that quite a few of the problems dated back to the regime under former rail minister Liu Zhijun.

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