Following its moves to curb losses by tightening the reins on state asset transfers late last year, the State-owned Assets Supervision and Administration Commission (SASAC) is now strengthening personnel management in its subordinate large state-owned enterprises (SOEs),
Senior executives are being targeted in the reform. All, without exception, are required to pass standardized examinations. The recent personnel shuffle in SOEs shows just how serious SASAC is about this scheme:
On May 14, SASAC announced the dismissal of the Great Wall Group's chairman of the board, and named his replacement.
On May 16, the president of the Shenzhen 999 Group was sacked.
On May 19, the new board chairman and president of oil giant PetroChina took office.
Top management at China Aluminum Corporation will also be adjusted, according to SASAC.
Meanwhile, SASAC is searching the world for qualified executives to take over the ailing SOEs. Li Rongrong, director of SASAC, said that 23 jobs have been made available this year.
Candidates for upper-level positions in most of the SOEs will be required to compete publicly for the job. Li said that the goal is to encourage good employees to remain, and to attract people from both China and overseas.
However, the simple selection procedure has come under some criticism. Some are complaining that boards should appoint chief executives, especially when SASAC hired globally last year.
Li promised that SASAC will manage the SOEs in the role of fund provider, and that the boards are responsible for operational management. SASAC will assign board members to manage corporate affairs according to Corporate Law, he said. The executives of most of the SOEs will be elected by the board.
Back in February, Li announced that the commission planned to have all the boards of large SOEs set up within three years, and that it would assign board members to six in the latter half of the year. Some SOEs have already published want ads on SASAC's official website.
"It is far from enough for us to appoint executives to manage SOEs," said Li recently, "Only by setting up boards can the interests of nation, the real fund provider, be protected."
(China.org.cn by Tang Fuchun June 2, 2004)
