The chairman of state-owned China Resources Holdings Co. Ltd., Song Lin, is under investigation for “suspected serious violations of discipline and law.”
China’s Central Commission for Discipline Inspection (CCDI) announced the charges on its website Thursday. Violating discipline is the jargon used to refer to corrupt activities.
Wang Wenzhi, a journalist with the Economic Information Daily newspaper run by the Xinhua News Agency, first reported the alleged violations to the CCDI, he said on his blog.
Last July, Wang accused a China Resources subsidiary, China Resources Power, of paying an inflated price to acquire Shanxi Jinye Coal and Coking Group. Wang said on his blog that China Resources paid for the acquisition ahead of schedule, leading to a huge loss of state-owned assets.
China Resources denied all accusations of wrongdoing.
Hong Kong-based China Resources is a holding company for a group of energy, land and consumer businesses in mainland China and Hong Kong.
Six China Resources Power shareholders filed a lawsuit in Hong Kong against 20 directors of China Resources, including Song, over the alleged fraudulent acquisition.
Julie DiMauro is the executive editor of the FCPA Blog and can be reached here.