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Corruption in China

China insurance firm ex-boss to face corruption charges

Former president of the People’s Insurance Co, Wang Yincheng, accused of taking bribes, misuse of company funds and other offences

PUBLISHED : Wednesday, 05 July, 2017, 5:35pm
UPDATED : Wednesday, 05 July, 2017, 11:01pm

China will prosecute the former president of the People’s Insurance Co (Group) of China after an investigation found he engaged in corrupt practices, including bribery, the ruling Communist Party said on Wednesday.

The party’s corruption watchdog said Wang Yincheng, who was also the vice-chairman and executive director of People’s Insurance, had been expelled from the party for “serious discipline violations”, the party’s usual euphemism for corruption.

PICC’s president Wang Yincheng under investigation by China’s discipline commission

The Central Commission for Discipline Inspection said in a notice on its website that Wang interfered with inspections and audits, corroborated with corrupt officials, used public funds to pay for personal holidays and took bribes.

The investigation found that Wang had flouted frugality rules by frequenting golf clubs and allowing subsidiary companies to pay for his personal travel fees. Wang was also found to have traded power for money, inserted relatives into the company against the rules, allowed them to use his influence to seek profits, according to the commission.

The statement said that as a senior official, Wang had lost his values, seriously violated the party’s code of conduct and did not cease his inappropriate behaviour after the party’s 18th National Congress in 2012 when the new leadership in Beijing launched the anti-corruption campaign.

His case will be handed over to the judicial authorities, the commission said, meaning he will be prosecuted.

It was not possible to reach Wang for comment and unclear if he has been allowed to retain a lawyer.

The party controls the legal system so it is unlikely that the courts will challenge the charges against Wang. In such cases, the defendant is usually found guilty.

China takes down insurance regulator, capping a year-long industry shake-out

President Xi Jinping’s corruption campaign has netted leading officials in the country’s finance sector from bank chiefs to financial regulators.

People’s Insurance said in February that Wang was under investigation for suspected serious disciplinary violations.