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China eyes using market to fight graft in construction sector by wwy yrj





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China eyes using market to fight graft in construction sector by
Article Posted: 12/24/2012
Article Views: 77
Articles Written: 1412
Word Count: 631
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China eyes using market to fight graft in construction sector


 
Business,Business News,Business Opportunities
China is now eying building standardized "public resources tradingmarkets" as an effective tool in a renewed fight against graft inthe scandal-plagued construction sector. He Yong, deputy secretary of the CPC Central Commission forDiscipline Inspection (CCDI), called for accelerated building ofunified and standardized "public resources trading markets" toimprove the efficiency and quality of resource allocation, at atwo-day national conference which began Monday in Nanchang, capitalof Jiangxi province. The "public resources trading markets" should feature centralizedtrading, standardized operation, and should be governed and runseparately, He said. The markets should give full play to their fundamental role ofallocating public resources, he said.



The central government has been pushing forward the building ofsuch markets, as they are believed to be vital to ensuring thetransparency and fairness of the bidding process of keyconstruction sectors and prevent power-for-money deals. So far, 730 standardized public resources trading markets have beenbuilt at or above county-level nationwide, including eight at theprovincial-level, figures from the conference showed. Corruption can occur in all links in the chain of a constructionproject, from land use approval to project management, publicbidding and construction material purchase. About 16,700 people have been punished for disciplinary violationslinked to construction projects since a two-year national campaignto clean up the construction sector was launched in 2009, accordingto a statement from the national conference. The rule breakers, who received Communist Party's disciplinarypenalties, were implicated in about 22,200 cases of corruption,according to the statement.



Among them, 90 are prefecture-level officials while another 1,585are county-level officials. Some 8,824 of them have been referredto judicial authorities. The Communist Party of China (CPC) Central Committee decided inJuly 2009 to launch a two-year campaign to tackle corruption in theconstruction sector. As of April this year, central inspection teams had probed morethan 100,000 construction projects and more than 30,000 cases havebeen rectified. They also conducted sample inspections on 123 projects in keyfields such as land and water resources, public transportation,railway, and municipal construction and rectified 325 disciplinaryviolations in the course.



Minister of Railways Sheng Guangzu, said at the same conference,that the ministry would allow bids for its foreign-funded projectsand specialized equipments such as vehicles to enter local publicresources trading markets by the end of this year. The ministry had vowed previously to open bids for railwaycontracts to local markets in an effort to reform its biddingmanagement and to fight graft. All railway-related projects should enter "local public resourcestrading markets" in accordance with authorization or the locationof the projects, according to a document released by the ministrylast month. So far, 21 large and medium-sized construction projects, under theadministration of the railways ministry construction projects, werelooked after by the Beijing Engineering Construction TradingCenter, and involved a total trading volume of 2.65 billion yuan(416.37 million U.S.



dollars). Railway project bidding had been harshly criticized by the publicafter two high-speed trains crashed into each other in Zhejiangprovince, resulting in 43 deaths and injuring more than 200 otherpeople last July. According to investigation results announced last December,malpractice and illegal contracts were found in the bidding processadministered by the Ministry of Railways and its subordinatebureaus, which resulted in the failure of a train control systemthat had never undergone field testing before launch. Jiao Yong, Vice Minister of Water Resources, also announced at theconference, that the ministry had decided all its large andmedium-sized construction projects or those involving a totalinvestment of more than 30 million yuan will enter the publicresources trading markets from 2013.



And the rest of the ministry's construction projects will enter themarket by July next year, according to Jiao. Author Source xinhua Editor Yang Fan.

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