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Shanghai to prosecute nine officials


By Christopher Bodeen SHANGHAI, China, AP
Saturday, March 3, 2007


    

China plans to prosecute nine former government and state industry officials over a politically char

ged pension fund scandal in Shanghai, the country's business hub, state media reported Friday.

The announcement comes just two days before the opening of the new session of the national legislature, at which top leaders are expected to renew their determination to strike out at corruption eating away at the ruling Communist Party's legitimacy.

Local media reports said the nine, who include the former chief of the Shanghai Labor and Social Security Bureau, have been kicked out of the party and their cases transferred to prosecutors for indictment.

Charges ranged from taking bribes including cash and expensive wristwatches, illegally aiding friends and relatives, and leading "immoral and corrupt lifestyles," newspapers said. They did not say when the officials would be formally indicted.

The government has alleged that the officials took the bribes in exchange for providing state money for high-risk investments.

Figures for the amount diverted from the city's pension and housing fund vary, although the Shanghai Daily on Friday said 3.7 billion yuan (US$483 million; euro365 million) had been channeled into risky real estate, toll road and other investments.

Shanghai's mayor claimed in January that all the misused funds have been recovered, although he gave no figures.

The prosecutions mark a major development in the scandal that has already toppled the city's Communist Party boss, Chen Liangyu, and seen more than a dozen other officials and business executives detained for questioning.

Chen's dismissal -- there has been no word on the status of his case -- was widely seen as a move by President Hu Jintao to use an anti-graft campaign to remove political opponents ahead of a major Communist Party congress later this year. Chen is the highest-ranking politician to be fired for corruption in over a decade.

Chinese leaders have long warned that corruption threatens their rule. But the Shanghai case has lent those calls new heft by showing that not even as powerful a politician as Chen is immune.

The party's Central Commission for Discipline Inspection said last month that nearly 100,000 party members were punished for corruption last year.

Those cases include China's former top statistician and reputed Chen associate Qiu Xiaohua, who is accused of taking bribes and having more than one wife.

In a separate case, the official Xinhua News Agency reported Friday that Zheng Xiaoyu, the former director of the State Food and Drug Administration, has also been expelled from the party. Zheng was dismissed from his job running China's drug administration in 2005 and is suspected of taking bribes to allow companies to circumvent drug approval regulations.


      






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