One of PetroChina’s main suppliers has seen bank accounts frozen and its chairman taken out of contact as investigations continue into corruption in the country’s biggest oil firm.
Wison Engineering confirmed financial regulators have questioned company officials about ‘certain projects’, seized records and frozen bank accounts, with chairman and founder Hua Bangson assisting authorites with their investigations.
“Hua is not contactable and he isn’t able to discharge his daily duties in relation to the group’s business operation and administration,” Wison said in a statement to the Hong Kong stock market.
“The company is still liaising with the regulatory authorities, assessing the impact of the investigations on its normal operation and taking actions to manage cash flow and risks.”
China is investigating PetroChina’s former Chairman Jiang Jiemin and four senior executives for graft. The nation’s largest oil producer was Wison’s biggest customer before 2012.
Wison’s revenue from contracts with PetroChina was around $18.1 million, or 5.6 percent of total sales, in the first half of 2013, with outstanding contracts at PetroChina are worth 204 million yuan, it said.
Last month three senior members of PetroChina’s management quit after the launch of a problem by Chinese authorities into claims of corruption at the company.