Sep 13, 2013 06:19 PM

Amid Scandal, Wison Issues Statement on CNPC Dealings

(Hong Kong) – A Hong Kong-listed oil engineering company has published details of its ties with China National Petroleum Corp. (CNPC) in a bid to distance itself from the firm amid a graft investigation.

Wison Engineering Services Co. said in a September 13 statement that it has four uncompleted projects with CNPC, with total contract value of 204 million yuan. Wison said that in the first half this year, revenue generated from CNPC and its subsidiaries totaled 111 million yuan, 5.6 percent of its total.

Wison has been linked to the scandal at CNPC since September 2, when Hua Bangsong, Wison's chairman and controlling shareholder, was reported to be helping authorities with an investigation.

Hua, 47, owns 78.1 percent of Wison, the company says. Media reports have questioned whether he actually owns the shares or holds them for unidentified investors.

Wison said on September 13 that Hua is still assisting the investigation, but the company did not know why. The company said it is considering naming an acting chairman to take over Hua's daily responsibilities. It has also appointed two executive directors, Zhou Hongliang and Cui Ying, to enhance management.

Wison's business is centered on design, equipment purchases and construction management services for petrochemical and refining projects. Since it was established in 1997, is has maintained a close partnership with CNPC and been involved in many of its refining projects.

Trading of Wison's shares has been suspended in Hong Kong since September 2. The day before, it suffered a 16.5 percent decline in share price, mainly due to speculation about its links with CNPC. The company's share price has dropped nearly 30 percent from its IPO price in December.

Xinhua has reported that the Communist Party is investigating Jiang Jiemin, head of the state-owned assets regulator and the former boss at CNPC. Earlier, it reported that four senior CNPC executives were being investigated and had resigned.

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