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China orders strategic SOEs to report production accidents

(Xinhua)
Updated: 2008-09-17 15:38

China's State assets watchdog issued a document in Beijing on Tuesday requiring 147 State-owned enterprises (SOEs) that report to the central government to make quarterly and annual reports of production accidents.

According to the document on SOE production accident supervision and management, enterprises should submit statistics and the cause analysis to the State-owned Assets Supervision and Administration Commission (SASAC) every quarter and each January.

Particularly serious accidents and those resulting in severe public incidents must be reported immediately to the SASAC, the document said. It added SOEs which experience more than one severe accident in a six month period would be given a warning/criticism notice.

In addition, executives of the firm would have their pay cut or be demoted if very serious accidents happened or were not reported to the commission.

SOEs that have a board of directors are required to take into account production safety while watching over management performance.

The enterprises should also set up organs watching over production safety, the document said.

The organs should have a safe production committee overseeing the production safety of a business and supervision and management department to coordinate and supervise production safety work of all corporate departments.

The SOEs are classified into three categories of different levels of production risks. Rank one refers to those which mainly deal with businesses such as coal mining, construction, production and operation of dangerous articles.

Rank two are SOEs majoring in metallurgy, machinery, electronics, electricity, construction materials, medicine production, textiles, storage, tourism and telecommunications. The rest falls under rank three.

The first rank and businesses with higher risk of production accidents of the second rank were ordered to set up independent departments to watch over production safety.

The commission also told the SOEs they were responsible for the production safety performance of their domestic and overseas subsidiaries.