In 2005, COSCO Group has carefully implemented and settled the central government’s Enforcement Outline of Completely Implementing the Corruption Punishment and Prevention System (Enforcement Outline) and SASAC’s Detailed Proposal, established leading team and workgroup to implement and settle the Enforcement Outline, and drafted the COSCO Group’s Implementation Proposal for the Enforcement Outline of Completely Implementing the Corruption Punishment and Prevention System. The proposal, giving a all-round planning for the future ten years’ anti-corruption and honest promotion work, is the group’s guideline documentation to enhance clean party construction and anti-corruption work for the future period. COSCO Group has initially completed the construction of corruption prevention and punishment system.

Deepening education on anti-corruption and clean administration promotion, to further improve consciousness of enterprise leaders and employees in clean operation

Subsidiaries of COSCO Group have been active in the education on anti-corruption and clean administration promotion. It has integrated the production and operation and the actual spiritual situation of employees, invited experts to deliver keynote speeches, issued internal publications, opened propaganda column on the website of enterprise newspaper, carried out talks on clean business operation, etc, to lead executives and employees learn laws and regulations on clean business operation carefully. The group has carefully organized education on discipline following and law abiding, case warning, etc. Through these activities, the consciousness of executives and employees in self discipline and clean administration has been further enhanced, regulations on clean business operation have been settled and new progress has been made for the enterprise’ anti-corruption and clean administration promotion.

Enhancing system construction, strengthening investors’ supervision and administration

To powerful maintain the rights and interests of COSCO Group’s investors at each level both at home and abroad in joint ventures, jointly operating companies and listed companies, the group has further enhanced investors’ supervision and administration on invested companies, to ensure the security of state-owned assets. In 2005 the group laid great emphasis on the investigation and study of joint ventures, jointly operating companies and listed companies in supervision and management, and after its research has established after Proposal to Further Strengthen COSCO Group’s Joint Ventures, Jointly Operating Companies and Listed Companies, and Regulations on Internal Auditing for COSCO Group’s Holding and Shareholding Companies.

Strengthening letters and visits and exposure

To maintain the enterprise’s reform, development and stability, COSCO Group focuses its work in letters and visits and exposure on the protection of state-owned asset safety and the maintenance of employees’ legal rights and interests, to authentically reflect the hot-spot problems reflected by the mass. The group has enhanced the initial verification and investigation on letters and visits, and consolidated the supervision and direction for letters and visits therefore ensure the high-quality disposal of letters and visits on schedule.

Intensifying supervision examination and efficiency supervision, trying to prevent law and regulation violations from the source.

The auditing sector and director commission of each subsidiary keep the integration of operation and management to serve the target of reform and development. They have deepened internal supervision, highlighting enterprise system transformation, to maintain employees’ legal rights and interests. They have also consolidated their efficiency supervision and supervision examination in port fee, ship rental operation, cargo ship agency, shipping fee collection, ship deal, large amount of materials purchase, technology introduction or technology transformation project, etc, trying to prevent law and regulation violations from the source, and to boost enterprise to improve management, decrease cost and increase profits. All these efforts have resulted in certain effects. (Related data is available on the 2005 Anti-Corruption Statistics)

Remarkable achievements in internal auditing

The auditing sector of COSCO Group has been actively fulfilling the function of auditing supervision, effectively carrying about auditing projects, and fully playing the role of auditing and supervision. Under the direction and management of COSCO, all auditors of the group have gradually promoted and innovate new auditing fields, new auditing methods on hot operation problems, important companies and important projects, focusing on Core businesses. All these have boosted the continuous deepening of auditing and supervision.     COSCO’s strict internal auditing underway

COSCO Group’s endeavor in auditing has been highly praised by its superiors. In 2002 the group was honored the title of “1999-2001 Excellent National Internal Audit Unit” by the National Audit Office. In 2004, the group won the honorable title of “Excellent National Internal Auditing Communication Unit” issued by the Ministry of Communication. In 2005, the group won the honor of “Excellent National Internal Audit Unit” for the fourth consecutive years. An employee of the group has won the honor of “Excellent Person for National Internal Audit”, two companies of the group won the honor of “Excellent National Internal Auditing Communication Unit”, and three auditors won ‘Excellent Person for National Internal Communication Audit”. Superior units have granted many times of awards for the group’s auditing work, the fame of which has been elevated. COSCO has complied the Detailed Guidelines for China’s Internal Auditing – Management for Internal Auditing Institute”, which indicates China’s authoritative auditing units’ high recognition for the group’s internal auditing work and capability. The Ministry of Communication’s Rescue ＆ Salvage Bureau and Marine Affairs Bureau have invited auditing experts sent by COSCO Group to conduct training and share experiences for their auditors. These experts have been highly evaluated by leaders of the ministry and attendees for their good training content. It has helped to promote the fame of COSCO Group’s efficiency auditing in the communication system.