Former China Telecom chairman to face prosecution for corruption

PUBLISHED : Tuesday, 12 July, 2016, 12:24am
UPDATED : Tuesday, 12 July, 2016, 12:24am

Former China Telecom chairman Chang Xiaobing will face prosecution, with the Communist Party wrapping up an internal anti-graft investigation against him.

The Central Commission for Discipline Inspection said on Monday that Chang allegedly took bribes, interfered in the anti-graft agency’s inspection and violated state-owned enterprise corporate governance rules.

Chang, who was on the management of state-owned China Unicom for 14 years before heading China Telecom in August, was detained as part of a graft probe in late December.

The CCDI said he was expelled from the party and sacked from all public offices. Prosecutors had taken over his case, it said.

Former China Unicom chairman Chang Xiaobing ‘sold state asset at fraction of its price to benefit disgraced general Guo Boxiong’

Two sources close to China Telecom said late last year that the investigation into Chang was related to allegedly corrupt activity during his time at China Unicom.

The CCDI started a new round of investigations into major SOEs in November 2014. A month later, the CCDI took away two Unicom officials, Zhang Zhijiang, a general manager responsible for network construction, and Zong Xinhua, who oversaw e-commerce, for alleged “serious violations of discipline”.

Chang was also said to have sold a state-owned office building in Beijing at 800 million yuan (HK$927 million) below the market price to benefit the family of disgraced former Central Military Commission vice-chairman Guo Boxiong, according to a letter by a mainland credit assessment company.