Eighty-three officials at major state-owned enterprises (SOEs) have been punished after government audits uncovered instances of illegal and improper activities.
The National Audit Office (NAO), the nation's graft-buster, yesterday released audit reports for 15 major SOEs including China Telecom and Sinopec Group. NAO charged them with offences such as overstating profits and illegal distributions of off-the-book gains in 2010.
For instance, Sinopec, Asia's largest oil refiner, hid 1.44 billion yuan (HK$1.76 billion) in its annual earnings report for 2010, while China Telecom understated net earnings of 44.3 million yuan that year.
Also, the Industrial and Commercial Bank of China, the nation's largest lender, made illegal loans exceeding 11 billion yuan in 2010.
Nevertheless, the major SOEs had 'strengthened management, improved performances and enhanced core competence' as economic reforms deepened, the NAO said.
The watchdog however failed to specify what punishments were levied on the 83 officials.