Following its moves to curb losses by tightening the reins on
state asset transfers late last year, the State-owned Assets
Supervision and Administration Commission (SASAC) is now
strengthening personnel management in its subordinate large
state-owned enterprises (SOEs),
Senior executives are being targeted in the reform. All, without
exception, are required to pass standardized examinations. The
recent personnel shuffle in SOEs shows just how serious SASAC is
about this scheme:
On May 14, SASAC announced the dismissal of the Great Wall
Group's chairman of the board, and named his replacement.
On May 16, the president of the Shenzhen 999 Group was
sacked.
On May 19, the new board chairman and president of oil giant
PetroChina took office.
Top management at China Aluminum Corporation will also be
adjusted, according to SASAC.
Meanwhile, SASAC is searching the world for qualified executives
to take over the ailing SOEs. Li Rongrong, director of SASAC, said
that 23 jobs have been made available this year.
Candidates for upper-level positions in most of the SOEs will be
required to compete publicly for the job. Li said that the goal is
to encourage good employees to remain, and to attract people from
both China and overseas.
However, the simple selection procedure has come under some
criticism. Some are complaining that boards should appoint chief
executives, especially when SASAC hired globally last year.
Li promised that SASAC will manage the SOEs in the role of fund
provider, and that the boards are responsible for operational
management. SASAC will assign board members to manage corporate
affairs according to Corporate Law, he said. The executives of most
of the SOEs will be elected by the board.
?
Back in February, Li announced that the commission planned to have
all the boards of large SOEs set up within three years, and that it
would assign board members to six in the latter half of the year.
Some SOEs have already published want ads on SASAC's official
website.
"It is far from enough for us to appoint executives to manage
SOEs," said Li recently, "Only by setting up boards can the
interests of nation, the real fund provider, be protected."
(China.org.cn by Tang Fuchun June 2, 2004)