Firms profited in 'shady coal-rights deals'

Three privately owned companies in Shaanxi have been accused of using officials' influence to gain the rights to explore coal resources in the province and later benefiting by more than 10 billion yuan (HK$12.5 billion) when two of them sold shares in the ventures to other firms, a mainland newspaper reported yesterday.

A well-connected businessman surnamed Zhou had helped "pull strings" for the three companies to get the paperwork approved reported.

The report said acquiring the exploration rights needed clearance from the Ministry of Land and Resources, the National Development and Reform Commission and state-owned energy giant China National Petroleum Corporation.

The allegations come amid thinly veiled reports by mainland media about the corruption probe into Zhou Yongkang and his immediate family members, including his son, businessman Zhou Bin.

The land ministry and China National Petroleum were among Zhou Yongkang's powerbases.

The revealed in August that party leaders had privately agreed to open a corruption investigation into the former member of the powerful Politburo Standing Committee.