According to China’s Central Commission for Discipline Inspection or CCDI’s announcement on Feb. 26, Chen Xiaolin, 67, former director of the State Grid Corporation of China, was investigated. The investigation for alleged severe violations of discipline and law comes nearly seven years after his retirement in October 2015.
Chen Xiaolin was transferred to the State Grid headquarters as Director and Deputy Secretary of the General Party Branch of the Materials Department (Bidding Management Center) in 2009, the same year as the Materials Department’s establishment.
In April 2015, Chen was removed from his post as a consultant to the State Grid Corporation and demoted to the deputy bureau level.
Chen spent four years serving as the State Grid’s Raw Materials Department director from February 2009 to January 2013. He was mainly in charge of State Grid material procurement bidding and material supply management.
The state-owned media Caixin, citing power industry sources, stated that the materials department is responsible for material procurement’s bidding valued at hundreds of billions of dollars annually for the entire State Grid system.
In recent years, corruption in the bidding process’s power grid procurement has repeatedly emerged.
Xu Zizhi, former secretary-general of the State Grid Enterprise Management Association, was indicted for allegedly accepting bribes in February this year. According to Yulin City People’s Procuratorate’s prosecution in Shaanxi, Xu sought benefits from others through material supply, project contracting, and job adjustment. In addition, he illegally accepted other people’s property, with a particularly huge amount.
Earlier in August 2017, Ren Wucheng, former third-level project manager of the State Grid International Corporation, was sentenced to 15 years in prison. He was accused of taking bribes of around $4.3 million through tendering and procurement.
State Grid was established in 2002 to restructure the former State Power Corporation. Its business area covers 26 provinces, municipalities, and autonomous regions in China. The power supply area accounts for 88% of the country’s land area, and the power supply population exceeds 1.1 billion.