Shanghai pension scandal
Encyclopedia
The Shanghai pension scandal was a corruption
case in Shanghai
, China
, in the which resulted in the dismissal of several senior Chinese Communist Party officials from 2006 onwards. The case involved the misuse and illegal investment of Shanghai's social security fund in various real estate and road projects.
Ultimately, former Shanghai party chief Chen Liangyu
was implicated in the scandal and removed from office. Also implicated were Zhu Junyi
, Qin Yu
, Yu Zhifei, and Chen Chaoxian, amongst others. Vice-Premier Huang Ju
and his wife Yu Huiwen were also believed to be involved, but were never officially exposed as being part of the scandal.
in assets. The allegations are that about a third was diverted into real estate and road investment projects.
, the Shanghai Party Chief
and Politburo
member was sacked from the party in 2006, becoming the most senior party member to be dismissed in a decade. He was accused of illicitly investing billions of yuan of pension fund money in real estate, aiding illegal businesses, shielding corrupt colleagues, and abusing his position to benefit family members. On April 11, 2008, Chen, 61, was sentenced to 18 years in prison for accepting $340,000 in bribes and abusing power, specifically, for stock manipulation, financial fraud and his role in the city pension fund scandal, at the No. 2 Intermediate People’s Court, Tianjin
.
Also sacked and expelled from the Communist Party were:
All those sacked will face criminal charges.
who worked with former CPC General secretary, President Jiang Zemin
and were seen as rivals to current CPC General secretary, President Hu Jintao
. The dismissals were seen as strengthening the authority of Hu within the party and weakening the Jiang loyalists.
.
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
case in Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, in the which resulted in the dismissal of several senior Chinese Communist Party officials from 2006 onwards. The case involved the misuse and illegal investment of Shanghai's social security fund in various real estate and road projects.
Ultimately, former Shanghai party chief Chen Liangyu
Chen Liangyu
Chen Liangyu was a politician of the People's Republic of China from the ruling Communist Party, and the disgraced CPC Shanghai Committee Secretary, or the city's first-in-charge....
was implicated in the scandal and removed from office. Also implicated were Zhu Junyi
Zhu Junyi
Zhu Junyi was a government official in Shanghai, China. Prior to his arrest during an investigation into corruption in Shanghai in 2006, he had been in charge of the Shanghai Municipal Bureau of Labour and Social Security, Shanghai's municipal pension system.-Biography:Zhu attended the Changle...
, Qin Yu
Qin Yu
Qin Yu was briefly the chief of Baoshan District in Shanghai, China. He was removed from office on August 29, 2006 as part of a widening probe into corruption involving the mishandling of funds from Shanghai's municipal pension system...
, Yu Zhifei, and Chen Chaoxian, amongst others. Vice-Premier Huang Ju
Huang Ju
Huang Ju was the Executive Vice Premier of the People's Republic of China. He joined the Communist Party of China in March 1966. He was ranked 6th out of 9, and was one of the least popular and most partisan members of the Politburo Standing Committee of the Party...
and his wife Yu Huiwen were also believed to be involved, but were never officially exposed as being part of the scandal.
Allegations
Shanghai's social security fund manages 10 billion yuanRenminbi
The Renminbi is the official currency of the People's Republic of China . Renminbi is legal tender in mainland China, but not in Hong Kong or Macau. It is issued by the People's Bank of China, the monetary authority of the PRC...
in assets. The allegations are that about a third was diverted into real estate and road investment projects.
Dismissals
Chen LiangyuChen Liangyu
Chen Liangyu was a politician of the People's Republic of China from the ruling Communist Party, and the disgraced CPC Shanghai Committee Secretary, or the city's first-in-charge....
, the Shanghai Party Chief
Politics of Shanghai
The Politics of Shanghai is structured in a dual party-government system like all other governing institutions in the mainland of the People's Republic of China . In the last few decades the city has produced many of the country's eventual senior leaders...
and Politburo
Politburo of the Communist Party of China
The Central Politburo of the Communist Party of China or Political bureau of the CPC Central Committee , formerly as Central Bureau before 1927, is a group of 24 people who oversee the Communist Party of China...
member was sacked from the party in 2006, becoming the most senior party member to be dismissed in a decade. He was accused of illicitly investing billions of yuan of pension fund money in real estate, aiding illegal businesses, shielding corrupt colleagues, and abusing his position to benefit family members. On April 11, 2008, Chen, 61, was sentenced to 18 years in prison for accepting $340,000 in bribes and abusing power, specifically, for stock manipulation, financial fraud and his role in the city pension fund scandal, at the No. 2 Intermediate People’s Court, Tianjin
Tianjin
' is a metropolis in northern China and one of the five national central cities of the People's Republic of China. It is governed as a direct-controlled municipality, one of four such designations, and is, thus, under direct administration of the central government...
.
Also sacked and expelled from the Communist Party were:
- Yu Zhifei, the manager of Shanghai's Formula 1 racing trackShanghai International CircuitThe Shanghai International Circuit is a motor racing circuit, situated in the Jiading District of Shanghai, People's Republic of China. The circuit is best known as the venue for the annual Formula 1 Chinese Grand Prix, which was first hosted in 2004....
. - Chen Chaoxian, a city district chief
- Ling Baoheng, the director of the Shanghai Asset Supervision Board
- Yin Guoyuan, deputy director of the Shanghai housing, land and resources administration
All those sacked will face criminal charges.
Political context
Chen was seen as a senior member of the Shanghai cliqueShanghai clique
The Shanghai clique or Shanghai faction is the name given to an informal group of officials in the Communist Party of China, especially those who serve in the central government of the People's Republic of China or the Central Committee of the Communist Party of China, who rose to prominence in...
who worked with former CPC General secretary, President Jiang Zemin
Jiang Zemin
Jiang Zemin is a former Chinese politician, who served as General Secretary of the Communist Party of China from 1989 to 2002, as President of the People's Republic of China from 1993 to 2003, and as Chairman of the Central Military Commission from 1989 to 2005...
and were seen as rivals to current CPC General secretary, President Hu Jintao
Hu Jintao
Hu Jintao is the current Paramount Leader of the People's Republic of China. He has held the titles of General Secretary of the Communist Party of China since 2002, President of the People's Republic of China since 2003, and Chairman of the Central Military Commission since 2004, succeeding Jiang...
. The dismissals were seen as strengthening the authority of Hu within the party and weakening the Jiang loyalists.
Popular culture
A thinly-veiled reference to this scandal is a major plot element of the Chinese TV drama Dwelling NarrownessDwelling Narrowness
Dwelling Narrowness , also known literally as Snail House, was a 2009 television series broadcast in Mainland China, based on a 2007 novel of the same name. It depicts two sisters struggling with life in Jiangzhou, a fictional city that strongly resembles present-day Shanghai...
.