MIIT Investigates Telecom Operators' Construction Deals
Ce.cn, 1/12/12
China's Ministry of Industry and Information Technology's (MIIT) website has announced that it has launched investigations into engineering projects undertaken by China's three major telecom operators.
The website reveals that MIIT is investigating 18 China Telecom (NYSE: CHA; 0728.HK) projects, including one project that has already begun to undertake reforms. MIIT will order revisions to the 17 remaining projects. Similarly, MIIT is also investigating 18 China Mobile (NYSE: CHL; 0941.HK) projects, of which one has already undergone reforms while the others have received a deadline to make appropriate changes. Finally, MIIT is investigating 23 China Unicom (NYSE: CHU; 0762.HK; 600050.SH) projects, two of which involve construction firms that have undertaken work they're not licensed for, or firms that lack construction qualifications altogether.
There are three major cited concerns for these projects: non-payment or failure to pay relevant production safety fees; failure to file quality control reports; and failure to provide anti-earthquake reinforcement in certain structures.
Keywords: regulation scandal China Telecom China Mobile China Unicom telecom MIIT CHL 0728.HK 0762.HK 0941.HK 600050.SH CHA CHU
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