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BEIJING: Senior executives of major Chinese state enterprises may face permanent bans from management jobs if found responsible for severe losses during their tenure, state media reported.
This is part of new rules from the Assets Supervision and Administration Commission meant to ensure that the heads of China's 147 main state companies perform adequately, Xinhua news agency said Wednesday.
The commission has published a list of actions that will trigger punishments, including losses incurred during day-to-day activities such as sales, and more special circumstances like corporate restructuring.
While life-time bans from important jobs are in the severe end of the range of penalties, milder forms include bonus cuts and warnings, according to Xinhua.
The 147 enterprises affected by the rules form the backbone of the state-owned segment of the Chinese economy.
However, they are plagued by corruption and malpractice scandals, sometimes involving senior management, Xinhua said.
Chen Jiulin, the 45-year-old former chief executive officer of China Aviation Oil (Singapore) Corp. Ltd. (CAO), was sentenced to 51 months in jail and a fine of around 207,000 dollars in 2006, it said.
Chen played a principal role in putting the company on the brink of collapse from derivatives gambling, leaving CAO with debts of 550 million dollars after trying to hide the extent of the damage from the market and regulators.
- AFP/yt
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