Ex-party chief in Shanghai gets 18 years for corruption
Thursday, 17 April 2008
FT Syndication Service
SHANGHAI: THE former Communist party chief in Shanghai was sentenced to 18 years in prison recently for his role in a corruption scandal, making him the most senior Chinese politician to be jailed for a decade.
Chen Liangyu, 61, was found guilty of "taking bribes and abuse of power" by a court in the northern city of Tianjin, Xinhua news agency reported, following an investigation into misappropriation of up to a third of Shanghai's pension fund.
As the most senior official in Shanghai, Mr Chen was also a member of the central party politburo. After being dismissed as Shanghai party secretary in September 2006, he was expelled from the Communist party.
His arrest was part of a wide-ranging corruption scandal that has led to more than 20 other local officials and businessmen being arrested. Earlier, Zhang Rongkun, a Shanghai businessman who was once one of the richest people in the country, was sentenced to 19 years in jail for his role in the scandal.
The authorities have been keen to present the arrest of such a senior figure as proof that the leadership is determined to crack down on corruption - one of the issues with the potential to undermine the party's legitimacy.
Political analysts have suggested that the investigation into Mr Chen also reflects other political goals: an attempt by President Hu Jintao to squeeze out allies of his own predecessor, Jiang Zemin - himself a former Shanghai party secretary - and a drive by Beijing to exert more control over powerful local governments.
Mr Chen had reportedly clashed with Premier Wen Jiabao over Beijing's efforts to slow economic growth.
The last time a politburo member was arrested was in 1995 when Chen Xitong, the former Beijing mayor and party boss, was held over corruption and later sentenced to 16 years. He was freed last year on medical grounds after eight years.
The Shanghai investigation focused on money from the city pension fund, which was funnelled illegally into a series of other investments by senior officials close to Mr Chen. Previous reports in official media said Rmb3.2bn ($457m, euro289m, £232m) had been siphoned off from the fund. However, Xinhua said that Mr Chen was responsible for the misappropriation of Rmb1bn.
According to Xinhua, the specific allegations against Mr Chen included taking bribes of Rmb2.39m, using his position to arrange jobs for his brother and son, and helping Mr Zhang to buy stakes in public companies at a loss to the state.
In an indication that the Shanghai pensions scandal is finally winding down, a city centre hotel, where Communist party investigators from Beijing stayed for nearly two years, re-opened for general business in the second week of this month.
SHANGHAI: THE former Communist party chief in Shanghai was sentenced to 18 years in prison recently for his role in a corruption scandal, making him the most senior Chinese politician to be jailed for a decade.
Chen Liangyu, 61, was found guilty of "taking bribes and abuse of power" by a court in the northern city of Tianjin, Xinhua news agency reported, following an investigation into misappropriation of up to a third of Shanghai's pension fund.
As the most senior official in Shanghai, Mr Chen was also a member of the central party politburo. After being dismissed as Shanghai party secretary in September 2006, he was expelled from the Communist party.
His arrest was part of a wide-ranging corruption scandal that has led to more than 20 other local officials and businessmen being arrested. Earlier, Zhang Rongkun, a Shanghai businessman who was once one of the richest people in the country, was sentenced to 19 years in jail for his role in the scandal.
The authorities have been keen to present the arrest of such a senior figure as proof that the leadership is determined to crack down on corruption - one of the issues with the potential to undermine the party's legitimacy.
Political analysts have suggested that the investigation into Mr Chen also reflects other political goals: an attempt by President Hu Jintao to squeeze out allies of his own predecessor, Jiang Zemin - himself a former Shanghai party secretary - and a drive by Beijing to exert more control over powerful local governments.
Mr Chen had reportedly clashed with Premier Wen Jiabao over Beijing's efforts to slow economic growth.
The last time a politburo member was arrested was in 1995 when Chen Xitong, the former Beijing mayor and party boss, was held over corruption and later sentenced to 16 years. He was freed last year on medical grounds after eight years.
The Shanghai investigation focused on money from the city pension fund, which was funnelled illegally into a series of other investments by senior officials close to Mr Chen. Previous reports in official media said Rmb3.2bn ($457m, euro289m, £232m) had been siphoned off from the fund. However, Xinhua said that Mr Chen was responsible for the misappropriation of Rmb1bn.
According to Xinhua, the specific allegations against Mr Chen included taking bribes of Rmb2.39m, using his position to arrange jobs for his brother and son, and helping Mr Zhang to buy stakes in public companies at a loss to the state.
In an indication that the Shanghai pensions scandal is finally winding down, a city centre hotel, where Communist party investigators from Beijing stayed for nearly two years, re-opened for general business in the second week of this month.