03/27/2008, 00.00
CHINA
Send to a friend

Trial begins against Chen Liangyu, over pension fund scandal

Little information is available. Not even the amount of money embezzled is known. Also accused of corruption is another official connected to the Shanghai group. It is an endemic and growing problem. Experts: overcoming corruption requires a free press and independent judges.

Beijing (AsiaNews/Agencies) - Two days ago, the trial began against Chen Liangyu, the former head of the communist party of Shanghai, accused of using Shanghai's pension funds for private speculation and for the benefit of his acquaintances.  Journalistic sources speak of a shortfall of 25.5 billion yuan (about 2.5 billion euro), although in January of 2007, Shanghai mayor Han Zheng  said that "only" 3.7 billion yuan were diverted, and that all of the money has now been repaid.

Chen, who was removed from his post in September of 2006 and expelled from the communist party in July of 2007, appeared serene and attentive.

There are 25 other party officials, politicians, and businessmen involved in the scandal, many of whom have already been sentenced. Wang Chengming, the former president of the Shanghai Electric Group, was condemned to death for corruption, and for the embezzlement of 210,000 yuan.

There are some who maintain that president Hu Jintao has used the scandal to diminish the power of the Shanghai clique, which is faithful to his predecessor, Jang Zemin.  The trial is taking placing Tianjin, according to many because Chen is still powerful in Shanghai.

Meanwhile, today the state news agency Xinhua made public the accusation of corruption against Wang Weigong, former secretary of vice president Huang Ju, also for reasons connected to the misappropriation of pension funds in Shanghai. Wang is accused of "abusing his position and taking large bribes in return for preferential treatment". Huang, who died in 2007, was head of the communist party in Shanghai until 2002, and was thought to be in the seventh place in the party's hierarchy.

Corruption, especially among local leaders, is one of the biggest problems in China.  President Hu and prime minister Wen Jibao have for years promised strict controls and the greatest severity.  But the phenomenon remains endemic, fostered by the lack of a free press and of independent judges.  The "heavy hand" is used only in a few cases: out of about 2,100 government officials punished for crimes related to their jobs from January of 2007 to January of 2008, only 163 have been suspended or fired, while 1,948 have received only "warnings".  The police also frequently take strong action against those who denounce cases of local corruption, sometimes by coming to Beijing to submit a petition to the central government, which claims to be combating the phenomenon.  In March, China's top prosecutor said that over the past five years, corruption cases have risen by 30%. (PB)

TAGs
Send to a friend
Printable version
CLOSE X
See also
Chen Liangyu, former leader of Shanghai, sentenced to 18 years
11/04/2008
Charges and arrests for the ‘Gang of Shanghai’
25/01/2007
Official gets death penalty for graft and embezzlement in pension fund scandal
21/12/2007
In Shanghai top party leaders falling
29/09/2006
Authorities steal nearly 700 million euros in pension funds
06/12/2006


Newsletter

Subscribe to Asia News updates or change your preferences

Subscribe now
“L’Asia: ecco il nostro comune compito per il terzo millennio!” - Giovanni Paolo II, da “Alzatevi, andiamo”