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January 15, 2013

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Ex-official arrested over illegal properties

A FORMER housing administration official, confirmed as the owner of 31 homes following online accusations, has been arrested on suspicion of taking advantage of his post in central China's Henan Province for personal gain, local authorities announced yesterday.

Zhai Zhenfeng, former director of Erqi District's housing administration bureau in Zhengzhou, the provincial capital, came under the spotlight after a whistle-blower claimed in December that his daughter owned 11 houses built under the government's affordable housing program.

An initial investigation found that Zhai's family at one point owned 31 homes before selling seven of them, yesterday's People's Daily reported.

Twenty of the houses were in a residential complex built by Zhai's family-run real estate development firm, and the other 11 were purchased using family earnings, the investigation showed. Investigators also found that two of Zhai's subordinates, with the help of his wife, had once illegally obtained 27 affordable houses. The two officials have been put under criminal investigation, the paper reported.

Zhai is also said to have fraudulently obtained a permit to have a second child in April 1990. His wife, son and daughter were also found to have two residence permits each in the province, including for Xiangcheng City. The police officers involved in granting the permits were detained on January 9, the report said.

Zhai was placed on file for investigation by the procuratorate on January 4 and detained by police two days later.

In 2011, there were allegations that he siphoned off 30 million yuan (US$4.82 million) and took advantage of his post to sell affordable houses. The Zhengzhou Party disciplinary watchdog found that it was his brother who ran the illegal business, but confirmed Zhai's embezzlement. During the probe, Zhai also confessed he had taken 70,000 yuan in bribes.

In September 2011, Zhai was removed from his post by the local discipline inspection watchdog of Erqi District for disciplinary offenses, including seeking profits for his family.




 

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