GRAFT CRACKDOWN
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Xi Jinping's anti-graft campaign

Retired Guangdong official Li Ruohong under investigation for 'discipline violations'

PUBLISHED : Saturday, 05 July, 2014, 4:02am
UPDATED : Wednesday, 17 September, 2014, 7:31pm

A retired provincial-level official in charge of finance in Guangdong is being investigated for suspected violation of party discipline, a term often used to describe corruption.

Li Ruohong, former deputy director of the Guangdong Financial Affairs Office, is suspected of "serious violations of discipline and is under investigation by the party", according to a statement issued on the website of the Guangdong discipline inspection commission.

Li's fall comes a week after Guangzhou Communist Party chief Wan Qingliang was detained on suspicion of graft.

Meanwhile , Li Junfu, chief of the Guangzhou Municipal Land Resources and Housing Administration Bureau, was detained as part of the investigation into Wan, according to People.com.cn, the website of party mouthpiece the People's Daily.

Li, 59, a senior economist, retired in June last year after four years as deputy director in charge of Guangdong's financial affairs. He had been in charge of the then Guangdong Development Bank, now China Guangfa Bank, for 10 years, first as president's assistant, then vice-president, president and chairman.

He resigned from his administrative and party positions from the bank on June 19, 2009 - the same day a vice-president of the bank, Wang Xin , was arrested for economic crimes committed in 2005 and 2006.

At the time Li stepped down, the bank was undergoing a restructuring under his instructions. According to a plan released earlier, Li was to stay in the post until 2011.

Li's name surfaced many times during the prosecution of Wang and a middleman involved in the disposal of the bank's non-performing assets. But Li was never prosecuted - which is rare for the mainland judiciary, according to a report by Caixin magazine in 2010. Wang was jailed for four years.

Li told Caixin that he only signed for approval for the disposal after Wang, as the executive in charge, signed for approval. It was up to judicial authorities to decide whether to implicate him. He only vaguely remembered the middleman after so many years.