Share

China graft probe gets into financial sector

Shanghai - Bank of Beijing board director Lu Haijun is under investigation for serious disciplinary violations, the bank said, the latest high-ranking banker to fall under scrutiny as China's anti-corruption drive turns to the finance sector.

The investigation comes after China Minsheng Banking corp's president, Mao Xiaofeng, resigned on Saturday for personal reasons after media reports that he was being investigated by China's anti-corruption watchdog.

Chinese President Xi Jinping has warned that the problem of official graft is serious enough to threaten the Communist Party's legitimacy and has vowed to go after powerful "tigers" as well as lowly "flies".

Graft-busters have investigated business leaders and politicians alike, including powerful former domestic security chief Zhou Yongkang, and Ling Jihua, once a top aide to Hu Jintao, Xi's predecessor.

Chinese media have connected the fall of Mao with the probe into Ling without giving specific details, except to note they both rose up through the Communist Youth League.

Ling was sacked as head of a department which works to co-opt non-communists in December after having been implicated in a scandal over his son's death in a luxury sports car accident.

Neither Mao nor Lu could be reached for comment.

Mao, once a rising star in China's banking world, had only been named to his post in August.

Bank of Beijing's Lu was the former chairman of Beijing Energy Investment Holding, one of the bank's shareholders, according to a statement posted on the Shanghai stock exchange late on Monday.

The bank was operating normally, the statement added.

The party's graft-fighting body, the Central Commission for Discipline Inspection, said on Friday it was probing Lu, who it identified only as the former chairman of Beijing Energy Investment, although it gave no details.

Beijing Energy Investment holds 5.08% of the bank's shares. Bank of Beijing has a market value of 106bn yuan and operates primarily in the domestic market.

The Chinese government's probe into the financial sector comes as part of a broader campaign to root out corruption at major state-run conglomerates.

The official Xinhua news agency said on Monday that anti-graft teams would be sent into 72 major state-run firms, including 19 in the financial and rail sectors.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,016.25
+1.4%
Gold
2,220.89
+1.2%
Silver
24.88
+1.0%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders