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Xinhua Journalist Accuses Chairman of China Resources of Corruption
Summary:A senior journalist with Economic Information Daily says that the chairman of China Resources oversaw the losses of over a billion yuan worth of state assets when the company paid too much for an acquisition target.

Photo: Sheep wander through Hongyatou Coal Mine in Shanxi
Source: Economic Information Daily

July 17, 2013
Translated by Tian Shaohui

Song Lin (宋林), the chairman of China Resources (Holdings) Company Limited (华润集团), has been accused of dereliction of duty and corruption by Wang Wenzhi (王文志), a senior journalist with Economic Information Daily, a paper published by Xinhua News Agency.

Wang Wenzhi made the accusations against Song via his personal Sina Weibo account (@记者王文志), saying that billions of yuan worth of stated owned assets were lost when a Hong Kong-listed subsidiary of China Resources acquired Shanxi Jinye Coking Coal Group Co. Limited (山西金业煤焦化集团有限公司).

The posts now appear to have been removed from Wang's Weibo account.

An article by Wang outlining the alleged problems with the acquisition, was published by Economic Information Daily on July 5.

The report alleges that the evaluation of the companies assets was conducted by the Shaoxi Jinye Group rather than China resources. The report also says that equipment at some of Shaoxi Jinye's coking factories were outdated.

The report also says that the China Resource Power Holdings Company Limited (华润电力控股有限公司), the subsidiary that made the acquisition, paid five billion yuan more than the 3 billion yuan that Datong Coal mine Group Company (大同煤矿集团公司) had bid for the company.

After news of the allegations emerged this morning, stocks of China Resource Power dropped by 9.6 percent during morning trading.

The method that Wang Wenzhi used to make the allegations is similar to another case.

In late 2012, the Deputy Managing Editor of Caijing Magazine posted three updates to his Sina Weibo account, alleging that Liu Tienan (刘铁男), the Director of the National Energy Administration and a Deputy Director of the country's top economic planning agency, had misrepresented his academic qualifications and was involved in improper dealings with business associates.

In May, anti-corruption investigators announced that Liu Tienan was suspected of "serious violations of discipline" and had been put under investigation.

Links and Sources
Economic Information Daily: 华润电力并购金业项目被指数十亿国资流失
Sina Finance: 华润电力半日大跌9.6% 集团董事长被举报
Economic Observer: National Energy Administration Denies Allegations Against Director
Economic Observer: When Rumors Come True

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