A sweeping corruption investigation into state oil giant China National Petroleum Corp (CNPC) has expanded from domestic oilfields to overseas operations, with two more oil executives being detained for questioning.
Bo Qiliang, the vice president of CNPC’s subsidiary PetroChina Company Limited, was one of those detained.
PetroChina said in a statement that Bo, who was in charge of the company’s overseas operations, had left his post as vice president due to a reshuffling of positions, without giving more details.
Police raided Bo’s office and detained his secretary as well.
Bo reportedly colluded with senior oil officials to steal state assets while leading CNPC’s aggressive acquisition of overseas assets.
He was reportedly linked to Zhou Yongkang, the retired domestic security chief and former general manager of CNPC. Sources said Bo promoted Jia Xiaoxia, the sister of Zhou’s second wife Jia Xiaoye, to be the vice president of PetroChina’s subsidiary in Canada.
Bo’s brother was a major agent for raw materials purchases by CNPC’s overseas operations, allegedly earning some $3.2 billion annually. Bo also allocated logistics management projects to his friends in exchange for alleged kickbacks.
Another executive, Zhang Benquan, the general manager of CNPC’s Iran subsidiary, was detained in early April.
Sources said Zhang could be linked to Li Guangyuan, chairman of Sichuan Star Cable Co Ltd, a major supplier of CNPC. Li was detained last July in connection with the CNPC graft probe.
From the FCPA Blog New Service (c) 2014 All Rights Reserved