Authorities in Yunnan province have cancelled the purchase of a cement plant, worth 46 million yuan (about HK$42.8 million), by its chief accountant and deputy manager, following complaints from angry employees.
The story told in the Workers Daily is typical of thousands of state factories across the mainland that are being sold, often at below market price, to their managers and senior staff, in connivance with local governments and in the absence of strict rules governing such sales.
The Yuanmei Cement plant, in the southwest province's Chuxiong county, was built in 1972 with an annual capacity of 100,000 to 130,000 tonnes of cement and has 550 workers and fixed assets worth 46 million yuan.
In March last year, in line with a nationwide policy, it set up a committee to decide how to turn the plant into a stockholding company.
This committee was headed by Yang Youguo, chief accountant and deputy factory manager.
On May 21, Mr Yang's committee produced a report saying the plant had a net worth of only 6.88 million yuan and proposed a sale at that price.
