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Sinopec response to overspending claims

By Yang Xi
0 Comment(s)Print E-mail China.org.cn, October 9, 2011
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Sinopec is one of the major state-owned petroleum companies in China.

Sinopec is one of the major state-owned petroleum companies in China.?[Photo/CNS]

Sinopec (SNP) Hebei branch on Sunday responded to an allegation over the Internet that the company spent 130,000 yuan (US$20,390) on its employees' business cards in 2009, saying the evidence for the claim has been altered.

The allegation, first reported by Beijing Times, came from a web poster claiming to be an insider at the company. The anonymous person said the Chinese oil giant purchased 500 packages of business cards at 260 yuan (US$41) per.

The person also attached the photocopy of a receipt as evidence of the allegation. The receipt appears to show Sinopec ordering a single package of business cards for 275 yuan (US$43).

Sinopec immediately responded to the report, saying the receipt belonged to a subsidiary firm. The Chinese oil giant said the total spending was instead 53,000 yuan (US$8,313), with each of the 500-plus packages costing 96 yuan (US$15). The sum also covered postage and sample printing expenses, it said.

After further investigation, the Hebei branch said the receipt posted by the self-proclaimed insider had been altered, as it differed from the office copy of the receipt Sinopec received from the business card company.

Sinopec, one of the major state-owned petroleum companies in China, was involved in a scandal earlier this year when an online report alleged a branch general manager spent 2.59 million yuan (US$406,242) on liquor since 2010. Sinopec contested the report, releasing the official figure of 1.59 million yuan (US$249,392), and in April demoted the accused executive.

China's business press carried the story above on Sunday.

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