Greater ChinaOperations

Audit authorities find illegal practices at Cosco

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.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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