China, water pollution, and information pollution
Six months ago we wrote about China’s impending water crisis in a tongue in cheek fashion. Today, there is a problem that is no joke, via WSJ (the FT has a similar report):
Harbin, a city of more than three million people in Northeastern China, closed schools and was trucking in drinking water Wednesday after shutting down its water system following a chemical-plant explosion that officials said polluted a nearby river with toxic benzene. The announcement of the shutdown set off panicked buying of bottled water, milk and soft drinks that left supermarket shelves bare.
The water system was shut down at midnight Tuesday and probably will stay out of service for four days, said an official of its Municipal Water Supply Group. He would give only his surname, Chen. An explosion Nov. 13 at a chemical plant in the nearby city of Jilin left the Songhua River, Harbin’s main water source, polluted with benzene, a toxic, flammable liquid, the government said….
Harbin’s plight highlights the enormous environmental challenges afflicting China amid galloping economic growth. The accident occurred at a chemical plant owned by a unit of PetroChina Co., one of China’s biggest energy companies. PetroChina, majority owned by the Chinese government and listed on the New York Stock Exchange, had suggested in a statement after the incident that environmental damage had been contained. The company couldn’t be reached for comment. (See related article.)
Though local officials denied it, water supplies were also cut in at least one district of Songyuan city in neighboring Jilin province, about 150 kilometers southwest of Harbin. A doctor from the Ningjiang District Central Hospital and a teacher from Ningjiang No. 1 Middle School said the water had been cut off for between five to seven days already. Both declined to give their names when reached by telephone.
In the related WSJ article, it appears that it is a bit difficult to get a fast and complete story out of the company that owned the plant, PetroChina:
The accident that Harbin officials fear may have contaminated their water supply occurred earlier this month, after several explosions shook a chemical plant owned by a unit of PetroChina Co., one of China’s biggest energy companies. PetroChina, majority owned by the Chinese government and listed on the New York Stock Exchange, had suggested in a statement after the incident that environmental damage had been contained. The company couldn’t be reached for comment yesterday….
PetroChina had issued a statement Nov. 15 acknowledging the explosion, which it said had killed five people and injured 23. The statement said the fire resulting from the explosion “was extinguished after all the substances on the scene were burnt out.” It added that “following an environment survey, it was noted that the air quality in the area of the accident complies with the relevant standard.” The statement made no mention of possible water contamination.
We’ll wait until all the facts are in to draw a firm conclusion, but the reporting to date is suggestive of a situation that needs fixing fast. China has historically been secretive when it comes to problems from bird flu to civil unrest to pollution. As offensive as these practices are, they are par for the course for Communist countries. But obfuscation and non-disclosure are intolerable in an NYSE company, which makes for an excellent conflict between the country’s communist and capitalist elements. We’d like to see Eliot Spitzer on the case.
UPDATE
Running from liability in the direction of disclosure, at least in this serious case, via Peoples Daily:
We do not know what is behind the cover-up. It might be because they were afraid that they would have to pay money for the losses the pollution has incurred in Harbin, and it might be because they were afraid of losing face. But the fact is they have brought shame on themselves by covering up the truth. We sincerely hope that no cover-up of a similar nature occurs again in the future.