Search

Editors

Harry Cassin Publisher and Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Richard L. Cassin Editor at Large

Elizabeth K. Spahn Editor Emeritus 

Cody Worthington Contributing Editor

Julie DiMauro Contributing Editor

Thomas Fox Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

Russell A. Stamets Contributing Editor

Richard Bistrong Contributing Editor 

Eric Carlson Contributing Editor

Bill Steinman Contributing Editor

Aarti Maharaj Contributing Editor


FCPA Blog Daily News

« China Corruption Blotter (March 28, 2014) | Main | Beyond deterrence (Part 4): That dreadful shift »
Thursday
Mar272014

Holiday gift list from China Coal Energy goes public

Image courtesy of China Coal EnergyDiscipline authorities in north-central China’s Shanxi province have launched an investigation into a subsidiary of China Coal Energy Company Limited, following allegations it offered gifts and cash worth 1.63 million yuan ($263,098) to local government officials during the Mid-Autumn Festival last year.
 
In January, a 20-page list of gifts and cash, detailing gifts given to government officials at all levels by China Coal & Coke Jiuxin Limited, a Shanxi-based subsidiary of state-owned mining giant China Coal Energy, appeared on the internet. Among the recipients were officials from the provincial environmental protection bureau, work safety administration, quality and technical supervision bureau, development and reform commission, and other regulatory bodies in the coal mining industry. The gifts or cash for each official were valued from 1,000 yuan ($161) to 20,000 yuan ($3,228). Recipients’ names were redacted from the circulated document.  

The authenticity of the list has not been verified but local discipline authorities have allegedly obtained the complete gift list and started an investigation.
 
China Coal was sued by Lingshi Jiuxin, a 25 percent shareholder in the Shanxi subsidiary, for failing to pay its proportion of investment. Lingshi Jiuxin allegedly released the gift list to force China Coal to finish the payment.

Lingshi Jiuxin has strongly denied the accusation. Both parties have insisted they were unaware of the gift list.

Sources: Beijing Times (京华时报), People’s Daily Online (人民网), China Business Journal (中国经营报)

_______________

Hui Zhi is the Senior Manager for Content with the China Compliance Digest, where a version of this post first appeared.