CNPC censured in state audit

Regulatory pressure: PetroChina criticised by Beijing's National Audit Office

China's National Audit Office has found irregularities at 11 state-owned conglomerates, including China National Petroleum Corporation.

CNPC, which is the parent of PetroChina, was criticised over a loan by subsidiary Bank of Kunlun of 570 million yuan to a Xinjiang-based company that without proper due diligence or post-loan management was at risk of total loss, as of July 2013, the auditor said.

Some 190 company officials at the 11 conglomerates "were dealt with severely", including 32 bureau-level cadres, the audit office said, according to Reuters reports.

From 2006 to 2013, the auditor said nine CNPC subsidiaries including Fushun Petrochemical did not use an open tender for procurement contracts worth 26 billion yuan.

In a filing to stock exchanges in Shanghai and Hong Kong, PetroChina said the company had worked out measures to rectify the problems cited.

"Apart from those that need government approvals, the rest of the problems have been rectified and relevant officials were made accountable," PetroChina said.

"The problems unveiled in the audit do not have major impact on the company's overall performance and financial reports."

Read the audit [Mandarin only}

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