FIRM DISQUALIFIED OVER ‘THREAT OF SECRETS LEAK’
PLA cuts ties with procurement company saying it violated confidentiality regulations while carrying out purchases for its strategic support force
The People’s Liberation Army (PLA) has disqualified a procurement company for posing “a serious threat” of leaking secrets, according to a notice issued by the military’s equipment department.
China Far East International Tendering violated confidentiality rules while carrying out purchases for the PLA’s strategic support force, according to the notice issued on the military’s equipment procurement information site.
The PLA’s Strategic Support Force, established in 2015, is the core of the military’s integration and modernisation plan and is tasked with integrating “strategic” functions across the military – from space and the internet to psychological warfare. The force also serves as an intelligence gathering hub.
Beijing is ramping up the scrutiny of confidentiality issues amid growing tensions with Washington and its allies. It passed a major amendment tightening its state secrets law last month.
The law stipulates that it is illegal to send state secrets via the internet without taking proper confidentiality measures.
The latest announcement of disqualification did not mention the state secrets law, instead citing PLA regulations. It said the company violated “relevant regulations including the management measures for equipment procurement tender agency services”.
The notice said the company violated regulations by “forwarding a large amount of procurement announcement materials” through emails and WeChat.
The company also stored a large number of confidential documents on unprotected computers, it said.
The notice was issued by the scientific research ordering bureau of the Central Military Commission’s (CMC) equipment development department.
The company’s management of confidential information was “out of control”, causing “serious risks and threats of leakage”, the notice stated.
It said the company’s qualifications as an equipment procurement tender agency had been revoked, and relevant military units were no longer allowed to sign new contracts with the company.
Existing services will also be terminated or “handled properly”, depending on the status of the project, according to the notice.
Meanwhile, the military units should promptly check and hand over documents and materials to “ensure that no security issues arise”, the announcement stated.
The news comes after a sweeping investigation into military equipment procurement by the equipment department. In a rare move, the department issued a notice in July for investigations into problems including “leaking information” on projects and helping certain companies secure bids.
It also follows a purge of senior military officials. In December, nine generals – including a number of members of the PLA Rocket Force, as well as two from the CMC’s equipment department – were dismissed from the top legislature.
They included Rao Wenmin, the equipment department’s deputy director, and Zhang Yulin, who served in the same role from 2016 to 2018.
Additionally, Li Shangfu – who led the equipment division from 2017 to 2022 – was sacked as defence minister in October with no explanation given. He has not been seen in public since August.