Xi Jinping's anti-graft campaign

China Resources' former top auditor detained on state secrets charge

PUBLISHED : Monday, 25 August, 2014, 10:51am
UPDATED : Wednesday, 17 September, 2014, 6:22pm

A former top auditor of the state-owned China Resources Group has been detained for allegedly violating state secrecy laws.

Police detained Huang Daoguo, 59, on charges of "illegally obtaining state secrets", the Economic Information Daily, a Xinhua-affiliated newspaper, reported yesterday.

Huang illegally obtained audit results by the China National Audit Office on a controversial investment deal by China Resources in Shanxi coal mines. He then leaked the information to Song Lin - the disgraced former chairman of the conglomerate who has been sacked and is now under investigation.

Song immediately acted on the information and instructed his subordinates to cover their tracks, the report said.

Li Jianjun, the whistle-blower on Song's alleged corruption, confirmed the news to the South China Morning Post.

Huang left the China National Audit Office and joined China Resources in 2011 as chief auditor. The National Audit Office launched an audit of the China Resources Group after whistle-blowers reported potential corruption at the group in 2011.

Huang obtained the audit report and passed it to Song. By the time the office reported the audit results in 2012, Song and his company were prepared.

The newspaper said Song immediately gave a coded instruction to the chairman of China Resources Power, Zhou Junqing, to "put more effort into the coal mines" in Taiyuan , Shanxi and "to remove hidden dangers".

"With the report provided by Huang, Song arranged [for others to commit] financial fraud to prepare for the audit results," said Li, who also acquired the report after it was leaked. "He also used his own connections to obstruct further investigation."

So far, at least four executives of the China Resources Group have been placed in custody for investigation.



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