Zhang Rongkun – a central figure in the Shanghai pension scandal
– will appear in court soon, charged with bribing high-ranking
officials to illegally obtain more than three billion yuan (US$405
million) from the pension fund, a Chinese magazine reported
today.
Zhang and his two investment companies face two bribery charges
and charges of share-price manipulation, fraudulently issuing
debentures and falsifying registered capital, the Beijing-based
Caijing said.
Prosecutors said Zhang paid Wang Weigong, deputy general manager
of the state-controlled Shenergy Group, 9.33 million yuan between
September 2001 and last June. Wang introduced Chen Liangyu, the
former Party secretary of the Communist Party of China Shanghai
Committee, to Zhang, according to Caijing.
With Chen's help, Zhang acquired a 99.35 percent stake in
Shanghai Road and Bridge Development Company Ltd, an arm of the
state-owned Shanghai Urban Construction Development Co, by paying
1.015 billion yuan, 300 million yuan less than its lowest market
value, the magazine said.
Zhang is reported to have maintained a network linking corrupt
officials and executives of state-owned companies by spending 30
million yuan on bribes.
Wang, the key person in Zhang's network, and Chen are still
under investigation.
Twenty-five senior government and corporate officials who were
toppled in the city's biggest financial scandal involving the
misappropriation of 3.7 billion yuan from the pension fund, have
been or will be tried in courts in Shanghai, Jilin Province and
Anhui Province.
Three pending cases involve Chen Chaoxian, former head of the
Changning District of Shanghai, Yin Guoyuan, former vice director
of the city's housing and land watchdog, and Yu Zhifei, former
deputy general manager of the Shanghai International Circuit Co
Ltd.
Yu went on trial in the city of Wuhu's Intermediate Court on
September 17, but no ruling has been released. He is accused of
embezzling 1.05 million yuan to buy personal housing. Chen
Chaoxian's case is said to be listed for hearing by the Hefei
Intermediate Court, but a date has not been announced.
(Shanghai Daily December 24, 2007)