Enterprise values

The high, and rising, income of the leaders of State-owned enterprises (SOE) is an area of public concern that has been overlooked in the matter of adequate scrutiny, regulation and control. In the name of business needs and enterprise development, public money is known to be squandered on private luxuries and pleasures, such as buying limousines, enjoying golf in exotic destinations or holiday travel.

The ministries of finance and supervision and National Audit Office have stated that they will carry out a nationwide investigation into how SOE leaders stood to benefit personally from exorbitant spending. Based on the investigation, a supervisory mechanism is expected to be put in place for ensuring that such unchecked expenditure does not become a channel for SOE leaders to embezzle public funds.

Almost all SOE leaders who were found to be corrupt have wallowed in decadent luxury. The leader of one big SOE was reported to have spent as much as 10,000 yuan a day in a questionable manner.