China's big three under scanner
June 01, 2011
China's three main telecom operators are reportedly being investigated on suspicion of corruption, following a series of incidents at China Mobile.
The state-run People's Daily Online reported that the Central Commission for Discipline Inspection has sent teams of investigators to China Mobile, China Unicom and China Telecom.
According to AFP, 60 people including government officials and telecom employees are said to have been targeted in the probe.
The probe is thought to involve an unprecedented corporate review into the state-owned operators' financial health, and to accompany a three-year audit of each from the National Audit Office.
People's Daily suggests that the investigation may focus on graft in China's booming new value-added services segment.
The probe comes following the arrest of a China Mobile deputy general manager earlier this month on suspicion of “seriously violating discipline.” Another executive was detained last year after allegedly absconding with hundreds of millions of yuan.
China Mobile's former party secretary and vice president, Zhang Chunjiang, was last year also fired after state prosecutors started investigating him over accusations of “serious financial irregularities.”
Jack Narcotta/Technology Business Research
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