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Chinese Antigraft Campaign Focuses on a Coal-Rich Province
China’s Antigraft Campaign Expands to a Coal-Rich Northern Province
(about 11 hours later)
HONG KONG — A burst of announcements over the past week has revealed deepening inquiries into suspected corruption in Shanxi Province, a part of northern China rich in coal and opportunities for graft.
HONG KONG — Newly disclosed investigations into senior politicians in Shanxi Province, an area in northern China rich in coal and opportunities for graft, reveal an emerging front in Communist Party leaders’ efforts to show they are serious about eradicating corruption.
On Friday, the Central Commission for Discipline Inspection, the Communist Party’s central agency for uncovering corruption, announced that two senior Shanxi politicians faced investigation for “serious violations of discipline and the law,” a euphemism for corruption and related abuses of power.
On Friday, the Central Commission for Discipline Inspection, the Chinese Communist Party’s central agency for uncovering graft, announced that two senior Shanxi politicians faced investigation for “serious violations of discipline and the law,” a euphemism for corruption and related abuses of power.
One was Bai Yun, a member of the provincial party’s Standing Committee; the other was Ren Runhou, a deputy governor who was formerly a chairman of a Shanxi mine company.
One was Bai Yun, a member of the provincial party’s Standing Committee; the other was Ren Runhou, a deputy governor who was formerly a chairman of a Shanxi mining company.
The inquiries into those two officials were disclosed nearly a week after the Central Commission said it was investigating two other senior officials in Shanxi, following a succession of others this year. The public security chief of Taiyuan, the provincial capital, was also dismissed, and reports said that he, too, faced graft allegations. And other reports said that Zhang Xinming, a Shanxi coal baron trailed by controversy, had been taken away by investigators, following an inquiry into a state company that made a disputed mine purchase from him.
Shanxi Province, with its dense web of officials, coal wealth and resource deals, appears to be President Xi Jinping’s next proving ground for trying to convince officials and the public that he is serious about ending entrenched graft in the party’s ranks.
Shanxi, with its dense web of officials, coal wealth and resource deals, appears to be President Xi Jinping’s next proving ground for attempting to persuade officials and the public that he is serious about ending entrenched graft in the party’s ranks. Including Ms. Bai, the latest official to fall, six former or current members of the Shanxi party’s Standing Committee — the province’s most powerful body — have come under investigation this year, and at least 17 other officials in the province have been investigated on suspicion of corruption or other abuses of power, according to a count from the website of the Central Commission.
The inquiries into Ms. Bai and Mr. Ren were disclosed nearly a week after the Central Commission said it was investigating two other senior officials in Shanxi, a development that followed a succession of other inquiries this year. The public security chief of Taiyuan, the provincial capital, was dismissed, and reports said he faced allegations of graft. Other reports said Zhang Xinming, a coal baron in Shanxi who is trailed by controversy, had been taken away by investigators after an inquiry into a state company that made a disputed mine purchase from him.
“Corruption here has become even worse than in other provinces, much worse,” Gao Qinrong, a former journalist from Shanxi who closely follows politics there, said by telephone from Taiyuan. Mr. Gao was arrested in 1998 and imprisoned for eight years after reporting on corruption among officials in Shanxi.
Including the announcement about Ms. Bai, six former or current members of the Shanxi party’s Standing Committee, the province’s most powerful governing body, have come under investigation this year. At least 17 other officials in the province have been investigated on suspicion of corruption or other abuses of power, according to a count from the Central Commission’s website.
As China’s economy and energy demand boomed over the last decade, Shanxi prospered from coal and associated industries. It also grew deeply corrupt, and the inquiries are likely to ensnare more officials who peddled access to mines, land, credit, business orders and promotions, Mr. Gao said.
“Corruption here has become even worse than in other provinces, much worse,” Gao Qinrong, a former journalist from Shanxi who closely follows politics there, said by telephone from Taiyuan. Mr. Gao was arrested in 1998 and imprisoned for eight years after reporting on corruption in Shanxi.
“It has coal, coal brought money, that brought corruption,” he said of Shanxi. “With all the money around, officials threw themselves into buying and selling posts, and with the posts, they could get more coal and more money.”
As China’s economy and energy demand boomed over the past decade, Shanxi prospered from coal and associated industries. It also grew deeply corrupt. The inquiries are likely to ensnare more officials who peddled access to mines, land, credit, business orders and promotions, Mr. Gao said.
Corruption investigators have already burrowed deep into Sichuan Province, in southwest China, which was once run by Zhou Yongkang, the most senior official to come publicly under a corruption inquiry since the founding of the People’s Republic. Teams from the Central Commission have also conducted inquiries in other provinces.
“It has coal; coal brought money; that brought corruption,” he said of Shanxi. “With all the money around, officials threw themselves into buying and selling posts, and with the posts, they could get more coal and more money.”
On Friday, the commission announced that yet another prominent politician had been placed under investigation for “suspected serious violations of discipline and of laws.” The official, Bai Enpei, is a senior member of the National People’s Congress — the party-controlled legislature — who was a former party chief of Yunnan Province in southwest China.
Corruption investigators have already burrowed deep into Sichuan Province, in southwestern China, which was once run by Zhou Yongkang, the most senior official to come publicly under a corruption inquiry since the founding of the People’s Republic. Teams from the Central Commission have also investigated other provinces.
The investigations in Shanxi have drawn particular attention because of the wealth at stake and because the inquiries could touch levels of the political elite that once seemed invulnerable. In June, Ling Zhengce — whose brother Ling Jihua worked as a top aide to Hu Jintao when Mr. Hu was president — lost his post as deputy head of a government advisory council in Shanxi and was put under investigation.
On Friday, the commission announced that yet another prominent politician had been placed under investigation for “suspected serious violations of discipline and of laws.” The official, Bai Enpei, is a senior member of the National People’s Congress — the party-controlled legislature — and was a former party chief of Yunnan Province in southwestern China.
Ling Jihua has not been publicly accused of any misdeeds by the government. But the inquiries into his brother and other officials have left him vulnerable, and other senior officials may fall, Mr. Gao said.
The investigations in Shanxi have drawn particular attention because of the wealth at stake and because the inquiries could touch levels of the political elite that once seemed invulnerable. In June, Ling Zhengce, whose brother Ling Jihua was a top aide to Hu Jintao when Mr. Hu was president, lost his post as deputy leader of a government advisory council in Shanxi and was put under investigation.
“It can’t stop here. Shanxi will have more big tigers,” he said, using Mr. Xi’s term for corrupt senior cadres. “Ordinary people talk among themselves about who will come next. There are a few names that come up regularly.”
Ling Jihua has not been publicly accused of any misdeeds by the government. But the inquiries into his brother and other officials have left him vulnerable, Mr. Gao said.
The party’s graft inquiries have become a ritualized procession: the Central Commission, or a local branch, names officials as under investigation for “violations of discipline”; their colleagues gather to endorse the inquiry, denounce their former comrades and vow loyalty to the party and to Mr. Xi; and the state-controlled news media issues reports about the misdeeds and sordid lives of the fallen officials. The same has happened in Shanxi in the past week.
The party’s graft inquiries have become a ritualized procession: The Central Commission, or a local branch, names officials under investigation for “violations of discipline”; their colleagues gather to endorse the inquiry, denounce their former comrades and vow loyalty to the party and to Mr. Xi; and the state-controlled news media issues reports about the misdeeds and sordid lives of the fallen officials. The situation has happened in Shanxi in the past week.
Last Saturday, the commission announced two new targets: Chen Chuanping, the party chief of Taiyuan; and Nie Chunyu, a senior administrator of the province’s Standing Committee. On Sunday, the Taiyuan authorities announced that the city’s public security chief, Liu Suiji, had been dismissed, and local news reports later said that Mr. Liu was ensnared in corruption allegations. Two recent predecessors in charge of the Taiyuan police have also fallen under graft inquiries since 2011.
Last Saturday, the commission announced two new targets: Chen Chuanping, the party chief of Taiyuan; and Nie Chunyu, a senior administrator of the province’s Standing Committee. On Sunday, the Taiyuan authorities announced that the city’s public security chief, Liu Suiji, had been dismissed, and local news reports later said that Mr. Liu was ensnared in corruption allegations.
Separately, China Resources Power, embroiled in a controversial mine deal in Shanxi, said on Tuesday that its president, Wang Yujun, was under investigation and had been suspended. The company, listed on the Hong Kong stock exchange, is an arm of China Resources Holdings, a state-owned conglomerate whose chairman, Song Lin, came under investigation in April, after he was criticized over the deal.
Separately, China Resources Power, embroiled in a disputed mine deal in Shanxi, said Tuesday that its president, Wang Yujun, was under investigation and had been suspended. The company, listed on the Hong Kong Stock Exchange, is an arm of China Resources Holdings, a state-owned conglomerate whose chairman, Song Lin, came under investigation in April, after he was criticized over the deal.
China Resources Holdings and China Resources Power engineered the purchase of three mines and other facilities in Shanxi in 2010, which aggrieved shareholders said were worth far less than the $1.6 billion or so that China Resources arms and a partner state firm paid for a controlling stake, according to documents filed in a lawsuit in Hong Kong. China Resources denied any wrongdoing but later said it was cooperating with the inquiry into Mr. Song.
China Resources Holdings and China Resources Power engineered the purchase of three mines and other facilities in Shanxi in 2010, which aggrieved shareholders said were worth much less than the $1.6 billion or so that China Resources arms and a partner state firm paid for a controlling stake, according to documents filed in a lawsuit in Hong Kong. China Resources denied any wrongdoing but later said it was cooperating with the inquiry into Mr. Song.
In the past week, news reports said that Zhang Xinming, whose company sold the mines to China Resources, was also detained for investigation early this month. A Shanxi coal mine owner who has long had dealings with Mr. Zhang confirmed the reports, as did Li Jianjun, a freelance Chinese journalist who has publicized the allegations about Mr. Zhang and China Resources. The mine owner spoke on the condition of anonymity, citing fears that publicly commenting could hurt his investments in the province.
In the past week, news reports said that Mr. Zhang, whose company sold the mines to China Resources, was detained for investigation early this month.
Investigators also recently took away a former senior auditor for China Resources Holdings, Economic Information Daily, a newspaper controlled by the state-run Xinhua news agency, reported on Monday. The auditor, Huang Daoguo, was accused of illegally obtaining a government audit office’s report about the company, according to the newspaper.
“The Shanxi case has just started,” Li Jianjun, a freelance Chinese journalist who has pursued the allegations about Mr. Zhang and China Resources, said in an interview. “It must continue upward. There were umbrellas protecting the corruption,” he said, using a Chinese term for official patrons.
Mr. Li, the journalist, said in an interview that Ministry of Public Security officers took Mr. Zhang away. The ministry has made no public announcement to confirm that, and Mr. Zhang said in a report in June that he was innocent.
“The Shanxi case has just started,” said Mr. Li, who was visiting Hong Kong. “It must continue upward. There were umbrellas protecting the corruption,” he said, using a Chinese term for official patrons of graft.
