Lifelong accountability system for the heads of State-owned enterprises
The State-Owned Assets Supervision and Administration Commission of the State Council recently issued a document to implement a lifelong accountability system for the heads of State-owned enterprises.
The Measures for the Implementation of the Responsibility Investigation for Violating Business Investment by Central Enterprises issued by the commission invests the heads of State-owned enterprises with lifelong accountability for important decisions that cause a significant loss.
It indicates the Communist Party of China and the government are strengthening their supervision of domestic and foreign Stateowned assets.
According to the document, the loss of State assets worth less than 5 million yuan ($730,861) will be regarded as a general loss of State assets, losses of between 5 million yuan to 50 million yuan will be regarded as large loss; and a loss more than 50 million yuan will be regarded as significant loss of State assets. The system will come into effect on Aug 30.
The document also separates the responsibility for any illegal operations or investment into direct responsibility, management responsibility and leadership responsibility. The persons in charge will be held responsible for the assets loss according to specific situations, and will be subject to reduced salaries, disciplinary action even legal punishments.
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