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CCDI to probe 26 SOEs [Copy link] 中文

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Post time 2015-2-12 09:30:57 |Display all floors
China's powerful Central Commission for Discipline Inspection pledged on Wednesday to direct the country's anti-graft campaign toward China's large State-owned enterprises.
The first round of the effort will cover 26 large SOEs, including some of the nation's largest and most high-profile energy corporations, said Wang Qishan, chief of the CCDI.
They include China National Petroleum Corp, China Na ...

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Post time 2015-2-12 09:30:58 |Display all floors
As I suggested before, turning these SOEs into cooperatives (model) is the best solution. For governance, Spain's Mondragon Cooperative corporation is a good example. Incentives (for top executives and talents) and needed funding (for expansions) can be done through the issuance of high dividend paying preferred shares (that do not change ownership), which, in fact, can be a positive and pressure point for management to perform. An alternative is privatization, which, in my opinion, may not be a good solution especially for China. Privatization can lead to abuses more often and quicker as witnessed by the Enrons, Worldcoms, some of the very large banks and financial institutions around the world (recently), which all required final bailouts by public tax money. In the meantime, many executives in these failed firms got away with millions of dollars to line their own pockets. These are no different than corruptions other than the methods are different. In my opinion, the latter is much worse as they and the problems they cause can become so big as to cause world shaking financial crises. Privatization only works, in my opinion, where the responsible owner holds the majority of shares.

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Post time 2015-2-12 15:46:01 |Display all floors
I call upon the CPC to be aware of ideologically-driven people WITHIN THE PARTY - probable agents of foreign corporate entities and traitors - who are out to destroy China's state enterprises. They want to imitate the failed systems of the West, such as the privatization of healthcare in the US makes it not only the most expensive but also most inefficient when it comes to serving the vast majority of the American people. Readers can also read Ellen Brown's recent article on "Why Public Banks Outperform Private Banks" at http://commondreams.org/views/2015/02/10/why-public-banks-outperform-private-banks-unfair-competition-or-better-mousetrap

Excerpts from Brown's article:

Public banks in North Dakota, Germany and Switzerland have been shown to outperform their private counterparts. International private competitors have responded by pushing for regulations limiting the advantages of the public banking model, but public banking advocates are pushing back.

In November 2014, the Wall Street Journal reported that the Bank of North Dakota (BND), the nation’s only state-owned bank, “is more profitable than Goldman Sachs Group Inc., has a better credit rating than J.P. Morgan Chase & Co. and hasn’t seen profit growth drop since 2003.”

The article credited the shale oil boom; but as discussed earlier here, North Dakota was already reporting record profits in the spring of 2009, when every other state was in the red and the oil boom had not yet hit. The later increase in state deposits cannot explain the bank’s stellar record either....

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