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January 18, 2013

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3 detentions in multiple homes case

Three people have been detained on suspicion they were accomplices of an official who owned dozens of homes in central China's Henan Province, procuratorial authorities said yesterday.

The three are suspected of being involved in the embezzlement of public funds. They were taken into custody by the Zhengzhou Municipal People's Procuratorate, after Zhai Zhenfeng, former director of the housing administration bureau in the city's Erqi District, was arrested on Monday on suspicion he used his post for illegal ends.

Wang Bochang, board chairman of Henan Province Road and Bridge Construction Co Ltd, was detained on Tuesday. He is suspected of embezzling 30 million yuan (US$4.8 million) of public funds, according to investigators.

The other two - Guo Sixi, manager of Yalong Real Estate Company, and Feng Songwei, an accountant for Dehua Pedestrian Street Management Co - were detained on suspicion of embezzling a combined 7 million yuan of public funds. Both companies belong to the housing administration bureau of Erqi District.

Cai Diantao, general manager of Yitong Real Estate Development Co Ltd from early 2009 to September 2012, is also under investigation. Lu Shuping, Zhai's wife, is the company's legal representative.

Cai said in the initial investigation that he made 300,000 yuan profit from re-selling more than 20 homes.

From 2005 to 2009, Cai was general manager of Henan Lanting Real Estate Development Co Ltd, of which several of Zhai's relatives are shareholders.

Zhai's family owns 24 homes, though at one point, they owned 31 before selling seven of them, according to investigators.

Zhai's case was exposed after an online whistleblower accused him of engaging in corruption for personal gain.

The microblog also said Zhai's daughter owned 11 government-supported housing units and had two residence permits, though individuals are only allowed one in China.

The local public security department found that Zhai and his wife, son and daughter, had two residence permits each.





 

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