3,200 officials withdraw stakes in coal mines

27 October 2005

More than 3,200 government and state-owned enterprise officials have given up their stakes in the accident-hit coal mines after the central government issued an order to ban officials' personal investments in coalmines in late August.

The figures are preliminary estimates from 20 provinces with coal production, reported the official Xinhua News Agency, which quoted an official from the State Administration of Work Safety. But the report did not mention the total value of the stakes.

The ultimatum issued by the State Council on 22 August ordered all government officials to give up their mining stakes or they would face dismissal. The central government issued the order following a coal mine flood accident at Daxing Colliery in Xingning City, Guangdong Province, on 7 August in which 123 miners were killed. A government investigation taskforce led by the Central Commission for Discipline Inspection later discovered that many local government officials held shares in coal mine businesses, raising suspicions that they had colluded with the mine owners.

According to the same report, some provinces, including Henan and Heilongjiang, extended the deadline of the government order. By 15 October, 356 officials had reported $23 million worth of shares in coal mines in Henan, while 147 officials had given up their stakes in coal mines in Heilongjiang by 12 October.

China Labour Bulletin is skeptical about the effectiveness of the government's order to ban officials' personal investments in the attempt to reduce coal mine accidents. (See our article "Will a ban on officials' personal investment in coal mining boost safety in China's mines?": http://iso.china-labour.org.hk/public/contents/news?revision%5fid=17349&item%5fid=17013)

Meanwhile, 13 local government officials, including party officials and work safety officials, from Baita Township and Shahe City in Hebei Province were held responsible for a fatal iron mine blaze which killed 70 miners on 20 November 2004. A total of 116 miners were trapped underground when the accident occurred.

Sources: Xinhua News Agency (24 October 2005, 25 October 2005), South China Morning Post (25 October 2005)

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