PetroChina Faces More Investigations and International Lawsuits.
Chinese media recently reported that another
five PetroChina executives have been
summoned for investigation last Thursday.
The regime is believed to be heightening its
investigations into the PetroChina scandal.
Along with the lawsuits from U.S. shareholders,
PetroChina is now facing deep trouble.
China Business News reported information from sources.
Five executives from PetroChina
were take away last Thursday night.
They included Sun Longde, a PetroChina Vice
President, and Wang Guoliang, China National
Petroleum Corp’s (CNPC) chief financial officer.
It also included Wu Mei, CNPC’s General
Manager, and Wang Wencang from SPT Energy
group, which is a subsidiary of PetroChina.
This report was cited by many other media.
China Business News deleted this report.
A statement was subsequently published, that PetroChina
has clarified the report as being “inconsistent with the truth.”
Both Wang Guoliang and Sun Longde
are handling their business as usual.
The three other executives were not mentioned.
Deng Yuwen, former Deputy Editor of the CCP
Party School newspaper Study Times, commented.
More exposures of investigations, as well as
the executives involved, are of no surprise.
Deng Yuwen: “Corruption in state-owned
enterprises has existed for many years.
This time, the anti-corruption campaign has extended
from government officials to state-owned enterprises.
It has even reached finance systems.
These are regulatory to officials, but
none to the state-owned enterprises.
In a sense, its corruption is more
serious than the government officials.”
Beijing lawyer Li Heping indicates that people
typically feel oil is very expensive in China.
He questioned who PetroChina serves, and whether
it is a certain class or the general public in China.
Li Heping: “We feel oil prices were very low when
Lai Changxing was profiting through his oil imports.
Now with his arrest, oil prices have gone way up high,
and the oil companies complained they’re losing money.
I wonder what they’re doing?”
Fujian Daily reported that the former Vice President
of PetroChina Li Hualin’s salary raised from 1 Million
Hong Kong Dollars to 13.87 Million HK Dollars in 2012.
His salary was as high as 100 Million Hong Kong
Dollars during his post at CNPC Hong Kong.
Li Heping indicates that high oil prices
suppress China’s economic development.
Fuel consumption in cargo transportation raises the cost.
Monopoly of oil in China has a serious
bottleneck effect on the economy.
Two lawsuits against PetroChina
in the U.S. took place recently.
A U.S. law firm filed a lawsuit on behalf of the U.S. investors.
Meanwhile, Johan Broux, an investor in Belgium,
filed a complaint against PetroChina, for failing
to expose its corruption investigation.
This led to PetroChina shares going
down more than 3.5 percent on Aug. 28.
PetroChina spokesman confirmed it
received legal documents and process.
He claimed individual violations are irrelevant
to the corporate management and strategy.
Yu Meisun, former State Council Secretary:
“When the chairman and general manager
are investigated over serious financial issues,
it is regulatory to notify the shareholders.
Failure to do so means the company is obligated to take
the responsibility for the loss, including the investors’ loss.”
Four PetroChina executives had been involved in
the investigation prior to the five currently exposed.
Former Chairman, Jiang Jiemin, is also being investigated.
Meanwhile, Tao Yuchun, former General Manager
of PetroChina subsidiary Kunlun Gas Utilization
Group, has been missing for more than a year.
PetroChina has been known to be under the
influence of Zhou Yongkang, former secretary
of the Central Political and Law Commission.
Interview Edit / Qin Xue Post-production