Beijing action on CNPC may spur foreign probes
Investigation of executives exposes mainland energy giant to US and British anti-bribery laws
Beijing's investigation of China National Petroleum Corp executives exposes the country's largest state-owned energy firm to possible probes by the authorities in the United States and Britain under their anti-bribery laws, analysts said.
The investigation is believed to be linked to former security tsar Zhou Yongkang.
Beijing has opened an investigation into Zhou, an ally of fallen official Bo Xilai, which will include Zhou's activities at CNPC.
Four executives of the company - Li Hualin, Ran Xinquan, Wang Daofu and Wang Yongchun - are being investigated for breaches of discipline.
CNPC's subsidiary, PetroChina, is listed in New York, rendering both companies vulnerable to investigation by the Department of Justice and the Securi- ties and Exchange Commission, said Keith Williamson, the head of forensic and dispute services in Hong Kong and mainland China at Alvarez & Marsal, an international professional services firm.
"With cases of alleged corruption that involve companies which have some connection to the US, I expect the US authorities to make an initial assessment of whether the alleged corrupt activity involves entities incorporated or listed in the US," Williamson said.
Daniel Roules, a partner at US law firm Squire Sanders, said the Department of Justice would not be seeking to cause an international incident over its investigation, but the governments of both countries wanted to root out corruption.