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Heads of major SOEs could be fired once found"underperforming"
2005-12-22 06:20:53 XinhuaEnglish

BEIJING, Dec. 22(Xinhuanet)-- A senior Chinese economic official on Thursday warned that the heads of major state-owned enterprises(SOEs) could be sacked even if they have"low spirit," before wrongdoings are found.

The stern warning given by Li Rongrong, director of the State-owned Assets Supervision and Administration Commission(SASAC), came after the arrest of the head of a Shenzhen-based pharmaceutical giant.

Fielding a question on the recent arrest of Zhao Xinxian, former chairman of Sanjiu Group at a press conference, Li acknowledged,"It's too late to fire those heads after they have made mistakes. They should be fired once they are found to be underperforming."

The 169 major state companies under the SASAC's supervision should build up corporate governance"as soon as possible," he said. Li stressed that company managers should be picked by boards, while calling for"more transparent account books and more stringent auditing."

The Sanjiu pharmaceutical group had reportedly borrowed a big amount from banks before the arrest of Zhao. Enditem

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