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Top China leader fired for graft Top China leader fired for graft
(about 2 hours later)
The most senior Chinese Communist Party official in Shanghai has been sacked for corruption, state media reported.The most senior Chinese Communist Party official in Shanghai has been sacked for corruption, state media reported.
Party secretary Chen Liangyu was dismissed after a high-level probe into alleged misuse of the city's pension fund, Xinhua news agency said.Party secretary Chen Liangyu was dismissed after a high-level probe into alleged misuse of the city's pension fund, Xinhua news agency said.
He has also been suspended from the powerful Politburo, Xinhua added. He has also been suspended from the Politburo, the party's top leadership council, Xinhua added.
The financial scandal appears to be one of the biggest to hit Shanghai since economic reforms began in China three decades ago, a BBC correspondent says. Mr Chen is the most senior official to be sacked since President Hu Jintao became party secretary in 2002.
The government investigation has centred on the alleged misuse of at least one third of the 10bn yuan ($1.2bn) pension fund to make illegal loans and investments in real estate and other infrastructure deals.The government investigation has centred on the alleged misuse of at least one third of the 10bn yuan ($1.2bn) pension fund to make illegal loans and investments in real estate and other infrastructure deals.
CORRUPT COMRADES 1998: Beijing mayor Chen Xitong jailed for corruption2000: Scores of officials implicated in smuggling scandal in Xiamen2001: Mayor of Shenyang and his deputy sentenced to death for land deals Chen Liangyu, 60, is accused of seeking benefits for companies and relatives and protecting people around him "who had seriously violated discipline and law", Xinhua reported.CORRUPT COMRADES 1998: Beijing mayor Chen Xitong jailed for corruption2000: Scores of officials implicated in smuggling scandal in Xiamen2001: Mayor of Shenyang and his deputy sentenced to death for land deals Chen Liangyu, 60, is accused of seeking benefits for companies and relatives and protecting people around him "who had seriously violated discipline and law", Xinhua reported.
His case has "created an odious political influence," the report added.His case has "created an odious political influence," the report added.
Party Congress Chen Liangyu has been temporarily replaced by Shanghai Mayor Han Zheng, Xinhua reports.
The allegations of misuse of pension funds came to light in July, and has already led to the removal and detention for questioning of several officials and prominent businessmen, including the city's social security and labour chief. Power struggle
The allegations of misuse of pension funds came to light in July, and have already led to the removal and detention for questioning of several officials and prominent businessmen, including the city's social security and labour chief.
Speculation over Chen Liangyu's political future has swirled since August, when his former secretary Qin Yu was removed from his post as a district governor for his alleged part in the scandal.Speculation over Chen Liangyu's political future has swirled since August, when his former secretary Qin Yu was removed from his post as a district governor for his alleged part in the scandal.
Chen Liangyu is the most senior official to be sacked since President Hu Jintao became party secretary in 2002. The sacking of Chen Liangyu comes ahead of the key Communist Party Congress later this year when Hu Jintao will be hoping to consolidate his leadership.
The sacking comes ahead of the key Communist Party Congress later this year when Hu Jintao will be hoping to consolidate his leadership. Until now, Shanghai - China's second city and financial centre - has been considered a stronghold for officials loyal to Mr Hu's predecessor, Jiang Zemin. Mr Chen was a protege of Jiang Zemin.
Until now, Shanghai has been considered a stronghold for officials loyal to Mr Hu's predecessor, Jiang Zemin. There has been a continuing power struggle between Jiang Zemin and Hu Jintao, the BBC's Quentin Somerville in Beijing says.
Chen Liangyu is being temporarily replaced by Shanghai Mayor Han Zheng, Xinhua reports. Mr Chen's dismissal is being widely interpreted as Hu Jintao strengthening his position both within the party and the country as a whole, our correspondent adds.
The sacking of such senior Communist Party members are rare.
The last member of the Politburo to be dismissed for corruption was former Beijing party secretary, Chen Xitong, in the mid 90s.
He was sentenced to 16 years in prison, but released earlier this year because of health reasons.