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China / Society

CNPC aims to curb embezzlement in subsidiaries

(Xinhua) Updated: 2014-08-14 20:01

BEIJING - The China National Petroleum Corporation (CNPC), the country's largest oil and gas producer,?is to start an internal inspection on embezzlement of earnings after it was exposed for corruption in an earlier audit.

The move will focus on uncovering and clearing "private coffers" set up in all its subsidiaries, including PetroChina, according to a statement from the CNPC's internal disciplinary unit on Thursday.

CNPC aims to curb embezzlement in subsidiaries

The logo of PetroChina, the listed arm of CNPC,?is seen at a gas station in Beijing in this August 29, 2013 file photo. [Photo/Agencies] 

Lower branches of the organization were found to hold a part of the company's profits to build their own private coffers, providing bonuses to employees or paying for extravagant consumption.

According to a National Audit Office report released in June, the corporation was found to have held back profits totaling 603 million yuan (98 million U.S. dollars) with some subsidiaries giving the embezzled money to staff.

Several affiliates of the CNPC have also been found avoiding open bidding for projects and purchases totaling 26 billion yuan.

The parent company asked all its subsidiaries to conduct a thorough self-check and form detailed reports, which will be read and signed by the corporation's highest leaders.

The inspection will also supervise the correction of irregularities uncovered by auditors, according to the statement.

Related coverage:

Special: Crackdown on corruption

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