Sinopec admits involvement in Daimler bribery case

• Source: Global Times
• [17:34 March 26 2010]
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After the Chinese connection in the Daimler's bribery case was revealed, China Petroleum & Chemical Corporation (Sinopec), China's largest oil refiner, admitted Thursday that its executives have been involved in the case.

The firm acknowledged that Daimler had offered bribes to a former Sinpoec International employee surnamed Du, but said the person was brought to trial four years ago and because of that case, the firm stopped doing business with Daimler.

According to media reports citing the US court files, on February 28, 2002, Daimler offered 18,000 euros (163.94 yuan) in bribes through Texas-based firm Shores International to the wife of a Chinese government official as commission. The money was used in a transaction involving a car worth 1.01 million euros to Sinopec.

Also, on October 25, 2004, Daimler paid about 53,500 euros to California-based company King Jack, and this money was involved in Sinopec's purchase of 16 Unimog and 12 Actross trucks in June 2004, which was worth 2 million euros.

Sinopec said that case was not reported accurately by the media. The State-owned enterprise claims the employee had taken commission from Daimler in February 2002 and December 2003, but Sinpoec's supervision department of Sinopec made the discovery in October 2004. After the company's investigation, it handed the employee over to the justice department in November, in September 2006 was convicted and sentenced to seven years in prison.

Du had been the vice manager of Sinopec's equipment and material department, which is responsible for procuring and managing the company's equipment and material. Every year that department bought 140 billion yuan worth of goods.

From April 2001 to June 2004, Du received commissions totaling 1.79 million yuan from firms including Daimler and Caterpillar.

Also, the file claimed that Daimler gave about 2.6 million euros to Chinese government officials to ensure receiving contracts worth 71.56 million euros from Sinopec and BGP. The money was given to senior managers of Sinopec and BGP as well as their families.

But Sinpoec Spokesman Tan Dashui said the company's investigation did not have evidence to show that the 2.6 million euros and contracts were true.