cement maker prospers after sacking corrupt workers

Singaporean businessman Jimmy Yeo Cheng Swee learned the hard way how to transform a state-run factory into a profitable business.

When he invested HK$50 million in 1992 to buy a state-run cement plant in Shaoguan, Mr Yeo recalled, 'my mistake was I didn't fire all of them'.

Some of his employees took bribes for selling company cement at low prices or zero payment, he said.

'In the first year, I accumulated six million yuan of receivables. Some buyers refused to pay or simply vanished.'

As a result, since 1994, Mr Yeo has insisted on cash in advance.

Some employees bought inferior coal, bribing factory technicians to pass it off as superior coal. This process involved a chain of employees and external parties, Mr Yeo said.