Senior staff at some loss-making state-owned enterprises in Guangdong are bleeding the firms dry, a research centre claims
Senior managers of some state-owned enterprises in Guangdong are bleeding their organisations of funds by paying themselves unreasonably high salaries and awarding arbitrary bonuses, a local research centre has claimed.
In a wide-ranging report released by the government-backed Guangdong Provincial Conditions Survey and Research Centre, it was also claimed the managers were using dubious methods to divide up their companies' profits.
Jiang Leyi, secretary-general of the provincial Communist Party Discipline Inspection Commission, authored one of the report's sections and lashed out at some leaders of state-owned enterprises (SOEs) for giving themselves high salaries based on inflated assessments of their contributions, China Business News reported.
Ms Jiang told the newspaper that some senior staff had earned up to 100 million yuan over several years even though the organisations were running at a loss.
'Some state-owned enterprises arbitrarily distribute the profits in the name of bonuses and divvy up the SOE property,' she said.
The report was also quoted as saying 'the existing salary management system in Guangdong lacks standards and effective restraints, and is out of control overall'.