(AsiaNews) - Chinese authorities have arrested Tao Liming, president of the
Postal Savings Bank of China (PSBC), on suspicion of economic crimes. This is but
another scandal that hits the mainland's banking system. Two weeks ago, Yang
Kun, an executive vice-president of the Agricultural Bank of China (ABC) was
also arrested. All this is part of a campaign undertaken by the Communist Party
and the central government to eradicate widespread corruption.
Beijing-based PSBC is the nation's seventh-largest lender by assets. Chen
Hongping, chief of an asset operation division, was arrested along with Tao. Both
are said to be assisting investigations into suspected economic crimes.
was placed under shuanggui, a disciplinary system for party members outside the
legal system that is the equivalent of house arrest.
said Tao and Chen were found to have issued illegal loans to clients to book unlawful
gains and to have misused assets.
PSBC has almost 3 trillion yuan in deposits. Its main business is extending
loans to small businesses in rural areas, but it lacks a complete risk-control
mechanism to ensure the safety of its assets.
the crackdown, corruption in China remains endemic. Yesterday in Shandong, the Communist
Party expelled 102 members for not properly registering with the party.
these, 68 were found to have violated the one-child policy. Rich Chinese are
known to bypass this law by paying off officials.
in China's central government and Communist Party are conscious that scandals
associated with party members are one of the main threats to domestic
decades of abuses of power, ordinary Chinese are no longer passively putting up
with local party officials. From petitions directly presented in Beijing to
street demonstrations, dissatisfaction is growing and even turning violent.
party has launched various anti-corruption campaigns to re-establish morality
in politics, but recent arrests show that they have failed so far.
analysts and dissidents believe that it is "impossible" to reduce corruption as
long as the government is not placed under democratic control.