• Thu
  • Nov 20, 2014
  • Updated: 1:34am
Xi Jinping's anti-graft campaign
NewsChina
CORRUPTION

China Resources Power president and Shanxi tycoon detained by authorities

Pair's detention comes months after former China Resources boss Song Lin probed for graft

PUBLISHED : Tuesday, 26 August, 2014, 11:42pm
UPDATED : Wednesday, 17 September, 2014, 6:28pm
 

The president of China Resources Power and a Shanxi tycoon, believed to be the biggest beneficiary of a controversial coal investment, have been detained by authorities.

CRP announced last night that Wang Yujun, 49, who is also the company's executive director, was under investigation by prosecutors in Jiangsu province.

The announcement came as sources revealed that Zhang Xinming - once the richest man in Shanxi with estimated assets valued at 4 billion yuan (HK$5 billion) - had been detained earlier this month. Zhang is the founder of Shanxi Jinye Coking Coal, the company at the centre of the controversial deal.

In 2012, CRP paid Zhang's company 7.9 billion yuan to buy three coal mines and related assets. Minority CRP shareholders last year launched a lawsuit against former and current CRP directors, including Song Lin, the disgraced former chairman of CRP's parent company, alleging that the mines were bought at an inflated price. The lawsuit was dropped in January.

Song was sacked in April and is under investigation for corruption.

"Zhang's detention is most definitely tied to the deal he has done with China Resources," said shareholder activist Li Jianjun, who accused Song of being the mastermind behind the controversial deal.

A second source, who is close to Zhang and spoke on condition of anonymity, echoed Li's claim.

"Song set off a chain reaction. Zhang thought he could buy his way out," the source said.

Both Li and the source said that Zhang was detained on August 4 in Taiyuan . They said many other people were also taken away for investigation.

"Another reason why the police detained him was because of his involvement in organised gang crime and money laundering," said Li.

Staff at Shanxi Jinye Coking Coal's human resources department said they were unclear about Zhang's schedule.

CRP said Wang, who was promoted to president in 2010, would be suspended pending the result of the investigation. He will remain as a director.

In May, Zhang told The Beijing News he was not close to Song and denied there was a problem with the coal acquisition. "There are always risks to dealing with cadres. But if you don't [deal with them] you can't get anything done," he said.

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This article is now closed to comments

Brit_in_China
Awesome news. Tigers and Flies alike are being taken down at one hell of a pace. I was talking with one official yesterday that said that all Government officials must now register children and spouses leaving the country and for what purpose. This was in relation to the "Naked Officials" investigation. How can an official earning 5,000 to 10,000 yuan each month afford to send his kids to a top flight US university and have jobless Mum stay there to look after them. Officials are now getting properly scared. I can literally smell the fear where I am in China. I guess few readers want to hear this: but well done Beijing. (British businessman in China)
newgalileo
All very positive to see the Government is not sparing the ones once deemed untouchable. Just cross fingers they do not stop. Still so much to clean up.
Beaker
My favorite parts about sitting down to SCMP is the daily take down of corrupt commies, all commies being engaged in corruption or they would be sent back down to the masses if they were not "teamplayers". The team's sole purpose to engage in corruption. My least favorite part of reading SCMP is the daily lowering of HK to the corruption level of China. You see people above the law, commit breaking n entering with assault and let go with a threat of a $3000 HKD fine if the guy does it again. Someone steals $3 billion HKD in faked labor shifts digging the Kowloon high speed rail tunnel (hence the "delay" because the missing shifts were not digging), and MTR is "fined" while getting a fare raise which more than pays for the stolen funds. Wonder what is happening with our huge pension fund, why it is made to be so big just in case emergency comes along, like commies stealing it as "investments".
John Adams
Love it !
.
Time and time again we lost orders to dirty-minded, corrupt competitors, and equally dirty-minded customers but we kept our hands clean and lost orders.
Now , finally, our equipment has pride of place in almost every production line in China (and our stuff works - really works for QC !)
.
Meanwhile the dirty-minded officials who blocked our stuff in the past are in prison
Justice prevails - eventually !
53cf704e-03a8-4070-9661-52b80a3209cb
Awesome news. Tigers and Flies alike are being taken down at one hell of a pace. I was talking with one official yesterday that said that all Government officials must now register children and spouses leaving the country and for what purpose. This was in relation to the "Naked Officials" investigation. How can an official earning 5,000 to 10,000 yuan each month afford to send his kids to a top flight US university and have jobless Mum stay there to look after them. Officials are now getting properly scared. I can literally smell the fear where I am in China. I guess few readers want to hear this: but well done Beijing. (British businessman in China)
hmleung600
Mr. Xi seems serious; that's good news. Catching the mice and the tigers cannot, however, be the end of it. The system, the country's economic reward mechanism, needs to change.
chaz_hen
These are STAUNCH Patriots eligible to be HK CE
lamlm38
spare the Dongguan Chicken please.. haha
chaz_hen
The battle cry of all HK men

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