Carmaker stalled in effort to fight graft

First Automotive Works, a State-owned automotive manufacturing company, has been severely criticized by China's top anti-graft watchdog for its inefficiency in fighting corruption.

The Central Commission for Discipline Inspection said on Wednesday that FAW staff members have continued their misconduct even though they were clearly asked to rectify their behavior after an investigation in 2011.

Zhu Baocheng, head of the inspection group at the CCDI, said a follow-up investigation in August found that corruption still exists, mainly in the sales department and the resource allocation sector of the company, and that no effective efforts to fight corruption have been made.

Zhu urged the company to severely punish any suppliers, auto dealers and advertising agencies who are engaged in bribery.

A company insider who asked not to be named said that scores of people being investigated will be punished, and some will be handed over to law enforcement departments.

"The inspection group has held serious talks with around 150 personnel in our company, most of whom are senior executives and managers, and checked the business contracts over the past two years," the source said.

Xu Jianyi, FAW chairman, said he agreed with the investigation result by the CCDI and promised to work out a plan to deal with the problems in a timely manner.

Three top executives of FAW-Volkswagen have been placed under investigation, including Zhong Liqiu, former Party chief and discipline chief of the company, and Li Wu, general sales manager.

In June 2012, the National Audit Office released a report on FAW's financial loopholes. Jing Guosong, former FAW-Volkswagen deputy general sales manger, was subsequently put under investigation. A chief of the sales department jumped from a building to his death.