(Yicai Global) Dec. 14 -- Two former executives of Chinese credit agency Golden Credit Rating International are to be taken to court for accepting bribes, after a probe into their conduct that began last December found them to have inflated the credit ratings of many companies in exchange for hefty fees, government watchdogs reported today.

Jin Yongshou, ex-general manager, and Cui Runhai, former general manager of the Jiangsu province branch, are accused of giving some companies false credit ratings, a measure of their ability to pay back loans, in exchange for huge kickbacks, the Central Commission for Discipline Inspection and the National Supervisory Commission said. A better credit rating makes it easier, and cheaper, for companies to raise financing.

No mention was made of the amount involved.

Cui, who also used to work for another state-owned credit rating agency Dagong Credit Rating as vice president of marketing, also took advantage of his position to give several brokerage firms more business in issuing bonds, they said.

Jin, who was previously president of Beijing-based Dagong's rating review committee, is also accused of accepting bribes to introduce construction projects to banks for funding.

In the wake of the probe, several other staff members at Beijing-based Golden Credit have turned themselves in. A number of employees at financial institutions are also under investigation.

Golden Credit, which is the country’s third biggest credit rating agency, has since cleaned up its act. The heads of client management teams and multiple members of staff now need to oversee each project. Spot checks are made on any rating level adjustments, refunds or risk items to make sure there are no irregularities.

The firm is also considering setting up a database of external experts to review projects that involve rating level adjustments and defaults, and to also build a smart rating system using Big Data to reduce the subjective sway of reviewers.

Dagong, which used to be the country’s fifth largest agency, was ordered to halt its rating service in 2018 for one year by the National Association of Financial Market Institutional Investors to reorganize its internal operations following accusations of corruption.

Editor: Kim Taylor