State Grid Corporation chairman Liu Zhenya targeted in massive audit

The nation's largest electricity grid operator, the State Grid Corporation of China, has been told to prepare 1,000 workspaces for state inspectors to conduct an accountability audit of the company's chairman, Liu Zhenya, a source said yesterday.

It will be one of the largest such audits ever carried out of a state-owned enterprise and will last at least until October, a person close to the National Audit Office said yesterday.

The audit office and other authorities had previously received letters alleging financial problems and accusing the power company's management of potential corruption.

State media including the website of People's Daily said five audit teams had been sent to the company, without giving details of the audit. The corporation's public relations officers could not be reached for comment yesterday, which was a public holiday.

The source, who did not want to be named, said that although there was no tip-off directly targeting Liu, 61, the authorities had received complaints suggesting he was indirectly responsible for alleged problems and the audit would focus on accounts kept during his time as general manager. It may go back to 2004, when Liu took up the position.

The audit may also be widened to include overseas assets, as well as some private companies contracted by the power firm for outsourced projects in Shandong province, according to sources close to the audit office and the company.