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November 3, 2015

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Donfeng’s ex-chief investigated for graft

THE former general manager of Dongfeng Motor Corp has been put under investigation for serious violations of discipline, the Party watchdog said yesterday.

Zhu Fushou, who was also deputy secretary of Donfeng’s Party committee and a member of its board, was removed from his position and expelled from the Party earlier this year after being charged with abuse of power, said the Central Commission for Discipline Inspection of the Communist Party of China.

He is alleged to have accepted bribes, infringed on state interests in property deals and taken a larger bonus than Party rules allow, it said.

According to a report by industry website Auto Headlines, Zhu approved a deal involving Dongfeng and a third-party that was financially beneficial to his brother-in-law.

After 30 years with Dongfeng, Zhu is the second-highest-ranking executive in China’s auto industry — after Xu Jianyi, the former Party chief and chairman of FAW Group — to fall foul of the Communist Party’s crackdown on graft within state-owned enterprises.

Other high-ranking officials from the two companies to have come under scrutiny include Ren Yong, Dongfeng’s former assistant general manager — who has been under investigation for alleged bribe-taking since the end of last year — and Shi Tao, a former executive vice president of FAW Volkswagen Sales Co, who was this year sentenced to life in prison for taking more than 33 million yuan (US$5.2 million) in bribes.

In a bid to shake up the carmakers, the government earlier this year dispatched former FAW head Zhu Yanfeng to take charge at Dongfeng and moved Donfeng Chairman Xu Ping to fill the leadership vacancy at FAW following XuJiangyi’s expulsion.

As well as the crackdown in the auto industry, China’s anti-graft authorities are also sharpening their focus and claws in the financial sector.

Since the end of last month, officials from the Central Commission for Discipline Inspection have visited 31 central-level commissions and companies.

Just yesterday, reports emerged that Zhang Yun, head of Agricultural Bank of China, had been demoted after being linked to a corruption investigation.

No more details were available at press time.

Meanwhile, China’s state prosecutor announced yesterday that it has approved the detention of Yang Dongliang, former head of the State Administration of Work Safety, who was sacked shortly after the blasts at a chemical warehouse in the port city of Tianjin in which 160 people lost their lives.

In a brief statement, the prosecutor said that it has approved the taking of “coercive measures” against Yang, a term that generally denotes detention and usually precedes a criminal prosecution.




 

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