Date
25 September 2017
Avic Heavy Machinery produces castings and metal forgings used in everything from making rockets to passenger planes.  Photo: CCTV
Avic Heavy Machinery produces castings and metal forgings used in everything from making rockets to passenger planes. Photo: CCTV

Graft crackdown hits aerospace sector

China’s widening anti-corruption crackdown has landed in the aerospace industry.

A senior manager of Avic Heavy Machinery Co. Ltd. (600765.CN) is under investigation by China’s discipline watchdog, according to a regulatory filing.

Wu Hao is suspected of unspecified offenses but an unnamed source said he might have been involved in price padding in a Xián project, 21st Century Business Herald reported Thursday.  

Wu, a deputy general manager in the metal casting and forging company that makes parts for the aerospace industry, is the latest in a string of corporate executives to become entangled in China’s anti-graft net.

The crackdown has spread to the power industry, oil and gas industry and now the aerospace industry.

Li Guolei, director and deputy general manager of a subsidiary of the China Aerospace International Holdings Ltd. (00031.HK), was under investigation when he jumped off the 19th floor of the China Aerospace Center in Kwun Tong in May, the newspaper said.

Last month, China announced that Song Lin, the ousted chairman of state-owned conglomerate China Resources (Holdings) Co., had been sacked for “suspected serious violations of discipline and law”, a euphemism for corruption.

Song’s case could lead to former premier Li Peng’s family which controls vast portions of China’s power grid.

And last year, senior management of China National Petroleum Corp. linked to retired security tsar Zhou Yongkang were placed under investigation for various offenses.

Zhou himself has been under investigation for alleged abuse of power and corruption.

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China’s Shenzhou 8 is a type of rocket that uses castings and metal forgings made by Avic Heavy Machinery. Photo: Xinhua


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