31 Mar '12, 7am

#china #sourcing Fraud found in major projects in China - AsiaOne

#china #sourcing Fraud found in major projects in China - AsiaOne

By Xin Dingding China Daily/Asia News Network Saturday, Mar 31, 2012 CHINA - In two separate reports, the National Audit Office announced it found evidence of improper activity in one of the country's major natural gas pipeline projects as well as earthquake reconstruction efforts in Yushu, a prefecture in Qinghai province. A report released by the office on Friday showed that the 8,645-km project purchased material and equipment worth a total of 837 million yuan (S$167 million) through substandard bidding. Fraud has also been detected in the sourcing of the pipeline's components. Poor-quality flanges, a compressor part, were found in 31 compressors installed along the pipeline, according to the report. Of a total of 242 flanges, sourcing agents supplied 147 of them ordered from two unlicensed domestic factories, it said. Auditors also uncovered unqualified construction wo...

Full article: http://www.asiaone.com/News/AsiaOne%2BNews/Asia/Story/A1S...

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