China audits conglomerate amid corruption claim, vows punishment if illegality found

The Chinese government says an audit of a giant state-owned conglomerate is under way, apparently responding to corruption allegations a Chinese journalist issued against its chairman and other top executives.

The official Xinhua News Agency reported Friday that the agency that supervises state assets said an audit of China Resources Group was under way and that any wrongdoing, if found, would be punished.

A Chinese journalist on Wednesday published a letter online accusing the conglomerate's chairman and top executives of its subsidiary, China Resources Power, of deliberately overpaying for an acquisition in 2010.

The journalist, Wang Wenzhi, said they were responsible for the loss of several billions of yuan in state assets.

China Resources, which reported a profit of $5.3 billion last year, has denied wrongdoing.