China Resources (Holdings) Co Ltd will be punished in accordance with the law if the company is found to have violated regulations and discipline, the State-owned Assets Supervision and Administration Commission said on Friday.

“The commission has noticed reports about the management at China Resources and an audit of the company is under way. Specific measures will be taken based on the audit result,” the government supervisor of 115 central State-owned enterprises said in a statement.

“If illegal activity is proven within the company, China Resources will be punished according to the law,” the commission said.

The statement came two days after China Resources chairman Song Lin was accused of corruption and malpractice that caused the loss of billions of yuan worth of State-owned assets.

Wang Wenzhi, a journalist at the Economic Information Daily under Xinhua News Agency, on Wednesday accused Song of overpaying and wrongdoing in the acquisition of Shangxi Jinye Coal Coking Group Co Ltd in 2010.

The Hong-Kong based China Resources is a State-run industrial conglomerate engaging in real estate, consumption and resources.

It ranks 187 on the Fortune 500 list in 2013. Song was appointed chairman of the company in 2008.