Six officials and business leaders that were involved in
Shanghai's social security fund scandal received sentences ranging
from three years to life.
The former chairman of the state-owned New Huangpu Group, Wu
Minglie, and a former deputy chairman of the Shanghai Electric
Group, Han Guozhang, received life sentences by the Changchun
Intermediate People's Court in Jilin Province on Sunday.
The former director of the Shanghai municipal labor and social
security bureau, Zhu Junyi, received 18 years, a deputy chairman
with China Huawen Investment, Wang Zheng, three years; a divisional
head with the labor and social security bureau, Lu Qiwei, eight
years; and Li Songjian, three years.
They were all convicted of taking or giving bribes, embezzlement
and abuse of power.
They were part of a group that illegally siphoned money from the
Shanghai's social security fund to invest in highway construction
and real estate development.
According to Caijing Magazine, the amount, more than 7
billion yuan, was loaned to several major companies.
The scandal broke in September last year, resulting in the
sacking and arrests of business leaders and senior officials.
On of those sacked was the Party chief Chen Liangyu. He also
faces charges.
Shanghai has since tightened its supervision of the social
security fund.
About 24 suspects are still being investigated or being
prosecuted by the judicial departments in Jilin, Anhui and
Shanghai.
Zhu's defense attorney, Zhai Jian, said his client would not
lodge an appeal against the sentence.
(China Daily September 25, 2007)