China’s National Audit Office has discovered a total of 36 irregularities and illegal practices at China Cosco Shipping Corporation and its affiliate companies in the areas of financial, operations and anti-corruption during an audit of the group completed in June.
According to the audit results, billions of investment made by the former Cosco Group and China Shipping Group in real estate, stock and newbuildings between 2013 and 2016 were against regulations.
Additionally, the audit office found a series of corruption activities within the group, including using corporate expense for luxury gifts and entertainment items.
In a response to the audit results, Cosco said it has completed rectification work of all the issues found in the report.
Cosco and China Shipping completed their merger in February 2016, and created the largest shipping line in the world. Cosco is currently the process of taking over Hong Kong containerline OOCL, a deal which is expected to be finalised this week.
