The probe into the conduct of China Telecom’s boss, Chang Xiaobing, for “severe disciplinary violations” was announced by the Central Commission for Discipline Inspection, the disciplinary watchdog of China’s ruling Communist Party.
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He had been the CEO of China Unicorn in Hong Kong, but move to China Telecom as a reshuffling of leadership that coincided with the plans for reforms to the government own sector worth $16 trillion.
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Born in 1957, Chang was Party chief at China Unicom before assuming his post at China Telecom in August this year, China’s official Xinhua news agency said on Sunday.
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Chinese President Xi Jinping launched the anti-corruption campaign after taking office in early 2013.
The company now maintains normal business operations.
The MIIT oversees the telecoms industry in China. In October, the nation’s three major wireless carriers – including industry leader China Mobile Ltd. – agreed to transfer about $US35 billion of their network assets into a newly formed company called China Tower Corp.in exchange for stakes in the infrastructure firm. Rumors surfaced back in February about the consolidation of China’s two largest telecom companies as a outcome of a surge in shares of both companies.
China Telecom is the biggest fixed-line phone provider and the third-biggest mobile provider in China.
The report, which Caixin has viewed, says some executives also helped companies run by relatives and associates win contracts from China Unicom.
Earlier this month, Fosun International chairman Guo Guangchang was reported to have gone missing. He reappeared in public a few days later.
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His alleged disappearance prompted speculation the firm was being drawn into Beijing’s corruption crackdown.
