Sinopec’s liquor problem

Teh Eng Koon/AFP/Getty Images
A Chinese worker installs a Sinopec logo at a new station in Beijing. An anonymous posting of an invoice from a Guangdong branch of the company created a public-relations disaster for the oil-refining company.

Apparently, it’s not a good idea to order the 50-year-old Moutai for your company’s party.

Sinopec, China’s main oil-refining company said this week it suspended Lu Guangyu, the general manager of the company’s Guangdong branch, in response to a scandal involving an order of expensive liquor worth 1.68 million Chinese yuan (US$258,000) — a stash that according to state media included 30 bottles of 50-year-old Moutai, a strong Chinese spirit made from sorghum, and 17 bottles of 1996 Chateau Lafite Rothschild, a premium Bordeaux wine.

The booze scandal originally surfaced on April 11 when someone anonymously posted copies of liquor invoices on Tianya, a popular Chinese online forum. News of the posting spread quickly, inciting a wave of online comments from disgruntled Chinese consumers, linking the latest increase in fuel prices to the luxurious tastes of Sinopec’s upper management.

Within days, the company realized it had a major public relations debacle on its hands and had to respond. It launched an investigation into the matter and on Sunday — six days after the original posting — the company announced it suspended its Guangdong manager.