China Shipping Group comes under corruption investigation

In a working brief from China’s central anti-corruption inspection team, an unspecified handful of senior officials at CSG were found to have unlawfully used company resources to benefit their own privately set up shipping companies.

The anti-corruption team’s investigation also found that CSG funds were wrongly used for personal entertainment expenses and gift cards.

The latest crackdown on CSG follows closely the probe into China State Shipbuilding Corporation (CSSC) for corruption activities as well.

In December last year, Mao Shijia, former general manager of China Shipping Tanker Company, subsidiary of CSG’s China Shipping Development, was sentenced to six years imprisonment and fined RMB1.5m ($240,200) for corruption.

Mao’s assistant Liu Houping was also sentenced to three years and six months of imprisonment and fined RMB200,000 for corruption.

Xu Lirong, president of CSG, expressed regret over the corruption practices and pledged to implement internal control and management changes according to the anti-corruption team’s requirements.