Date
22 September 2017
Chinese authorities are believed to be conducting a thorough audit of the nation's largest power grid operator. Photo: Bloomberg
Chinese authorities are believed to be conducting a thorough audit of the nation's largest power grid operator. Photo: Bloomberg

China’s State Grid said to be under sweeping audit

Hundreds of inspectors from the National Audit Office (NAO) have been stationing in the offices of State Grid Corporation of China since April 17, Caixin.com reported Wednesday.

The audit inspection marks a supervision effort directed against the top management of the state-owned enterprise, the report said.

But a source in the State Grid’s China Electric Power Research Institute was quoted as saying that it is not unusual for the NAO to send hundreds of inspectors to the State Grid given the scale of the enterprise.

In a reform in 2002, the state power structure was divided into two power grid companies: State Grid and China Southern Power Grid Co. State Grid is the bigger entity, controlling the power grids in 26 provinces, autonomous regions and direct-controlled municipalities. Its chairman is Liu Zhenya, who has been in the position since 2004.

Inspectors were also sent to the state-owned China Power Investment Corp (CPIC) and another power company owned by the state, the report said.

A source close to the CPIC was quoted as saying that the check is directed against the former auditor of the company’s president Lu Qizhou. Lu had served as vice president of the company from 2002 to 2007, before being promoted to the president’s post in 2007. He is expected to retire in June.

There are now five state power companies in the country as a result of the reform in 2012. The five entities are CPIC, Datang Power, China Huaneng, Guodian Corp and Huadian Corp. CPIC is the smallest of the lot. CPIC is said to be undergoing some reorganization with State Nuclear Power Technology Corp.

– Contact HKEJ at [email protected]

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