Officials banned from posts in enterprises
(China Daily)
Updated: 2004-03-25 00:03

Party and government officials are not allowed to take posts in enterprises starting in May, according to a notice released by the CPC central committee.

Experts are hailing the new rule as "very necessary."

The Communist Party of China (CPC) Central Commission for Discipline Inspection and the organization department of CPC Central Committee, the country's top body for official management, recently issued a circular asking for the elimination of the phenomenon by the end of April, according to China Central Television (CCTV).

"If one government official has a post in an enterprise, it is very likely that the enterprise will enjoy some preferential policies and benefits from him,'' said Liu Suhua, an expert with the Party School of CPC Central Committee.

Such a fact will lead to unfair competition and destroy market order, she said.

In addition, the official will be prone to become corrupt because of the economic benefits involved.

Therefore, it is very necessary and a good move for the country to get rid of such a phenomenon, she added.

Party committees and governments at all levels and their departments should no longer approve concurrent posts in enterprises held by Party and government officials, according to the circular.

Party and government officials, who hold posts in enterprises, are required to resign their concurrent posts.

Meanwhile, enterprise leaders who hold Party and government posts should also be deprived of their posts in Party and government bodies.

But exception is allowed in cities which was set up based on local enterprises and where enterprise leaders have been holding Party and government posts to lubricate government-enterprise relations, according to the circular.

In such cities where concurrent posts are really needed, Party and government officials are allowed to continue to hold posts in enterprises.

However, the situation will be under strict supervision and management and must get the approval of the organization departments of superior Party committees.

According to the circular, enterprise leaders can still hold their posts if they are elected as officials in the National People's Congress (NPC) or the Chinese People's Political Consultative Conference (CPPCC) and do not need to be stationed at NPC or CPPCC.

When Party and government officials need to act as enterprise leaders, they must resign the Party and government posts, while enterprises leaders also have to resign their enterprise posts if they need to work as Party and government officials.

In some places of China, the elimination of the phenomenon has already been done.

According to Xinhua News Agency, Zhan Xialai, Party secretary of Wuhu, East China's Anhui Province, had resigned his role as the board chairman of an automobile company in the city.

And other Party and government officials who held posts in a construction investment company also resigned their posts in the company.

Although Zhan did contribute a lot to the development of the automobile company, he said his resignation is good for anti-corruption and the future of the company itself, according to the Xinhua report.

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