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August 19, 2015

Chinese safety inspectors gave Tianjin blasts warehouse 'the all-clear’

Officials said in review last year that firm handling dangerous goods had ‘established rather sound safety management system’, newspaper reports.

LI JING

JING.LI@SCMP.COM

PUBLISHED : Wednesday, 19 August, 2015, 12:59pm

UPDATED : Wednesday, 19 August, 2015, 12:59pm

Smoke rises amid the devastation caused by the blasts in Tianjin. Photo: SCMP Pictures

A safety review carried out last year of the company operating the dangerous goods warehouse in Tianjin – the scene of huge explosions that killed at least 114 people – said the selection of the site was in line with regulations and the city’s development plan, according to a newspaper report.

The authorities have so far not made public the details of the review into Ruihai International Logistics' operations, but the 21st Century Business Herald said a 98-page report had concluded that the company had “established a rather sound safety management system”.

The report was dated August 2014 and was conducted by 10 people from Zhongbin Haisheng, one of two licensed safety review agencies in Tianjin, the report said.

The agency has strong government connections, including with the Tianjin Firefighting Institute which comes under the control of the Ministry of Public Security, according to the article.

A military specialist in handling biochemical materials checks a flat near the centre of the blasts. Photo: Xinhua

Regulations for companies running businesses handling dangerous chemicals require large-scale warehouses such as Ruihai’s to be at least 1 km from public buildings, transportation lines or factories.

But a highway, light rail line and residential area were all about 600 metres from the Ruihai’s base in the Binhai New Area and all were damaged in the huge explosions last Wednesday night.

There are separate regulations for companies that use dangerous chemicals, but the provisions are more vague and there are no guidelines on how far businesses should be sited from homes or other factories.

Media in China have also reported further on the murky ownership of Ruihai International.

READ MORE: China's work safety chief detained for alleged graft in midst of Tianjin blast fallout

The biggest shareholder, Li Liang, who has a 55 per cent stake, was reported to be only holding the stock on behalf others.

Li’s mother told the financial news website Prism that Li, 34, was only an ordinary employee at the company with a monthly salary of several thousand yuan.

A paramilitary policeman and a regular police officer stand guard in an area of the blasts site. Photo: Reuters

Shu Zheng, another shareholder who holds a 45 per cent stake, said earlier he was holding the stock for others and was not involved in the company’s operations.

One of real shareholders is Dong Shexuan, according to The Beijing News.

Dong’s father, Dong Peijun, was a former police chief in Tianjin port, who died last year of cancer.

The newspaper reported that Dong senior was close to Wu Changshun, a former Tianjin police chief who was investigated for alleged corruption last year.

Dong senior was also placed under investigation in 2014 for seeking benefits for relatives, but the inquiry was suspended after his death, The Beijing News said.

http://m.scmp.com/news/china/society/article/1850761/chinese-safety-inspectors-gave-tianjin-blasts-warehouse-all-clear