|
Official arrested for huge economic losses
By Li Jing (China Daily)
Updated: 2004-11-26 09:13
Zhao Shuangju, former director of the Beijing Power Supply Bureau, was
arrested in connection to a US$55 million scandal.
He may face criminal charges, local media quoted sources with the Beijing
High People's Court as saying.
Zhao, 64, who held the position for 13 years until 1999, faces charges in
connection to the loss of 457 million yuan (US$55 million) from the State-owned
Beijing Electric Power Corporation - the successor of the bureau after a
restructuring earlier this year.
The missing funds were first revealed to the public in a report put forward
by Auditor-General Li Jinhua to the Standing Committee of the 10th National
People's Congress in June.
According to the audit report, Zhao provided guarantees to the Beijing-based
Weikerui Wire and Cable Company of 1.1 billion yuan (US$133 million) from
1994-96.
Afterwards, as the company was on the verge of bankruptcy, a local court
ordered the Beijing Electric Power Corporation to shoulder part of the
compensation responsibilities.
That resulted in a loss of 457 million yuan (US$55 million).
It is said that the former municipal power supply bureau had close ties with
the Weikerui company.
One of the three major investors of Weikerui was a sub-company affiliated to
the bureau.
The sub-company invested 64 million yuan (US$7.7 million) as part of the
total US$25 million registered capital of Weikerui when it was established in
1991.
The audit report shows that the 64 million yuan were misused from the special
funds of the bureau for power supply subsidies.
Weikerui was once a pillar enterprise of Pinggu District.
The annual output value of Weikerui exceeded 200 million yuan (US$24 million)
between 1998 and 2000, according to the district government.
However, the company has faced severe financial problems since 1994 and a
US$115 million investment to expand its plant was borrowed from banks.
Zhao's case is just the tip of the iceberg in connection to capital losses at
the National Power Company - the national power monopoly that was dismantled in
late 2002.
The auditor-general's report revealed that a total of 631 projects invested
by the National Power Company and its subsidiaries have lost money or left
themselves open to potential losses.
These projects relate to a total investment of 7.8 billion yuan (US$948
million) and the mistakes caused heavy losses of capital.
The National Power Company may have also concealed how much money it earned
between 1998 and 2002 - a total of 7.8 billion yuan (US$943 million) less than
the true figure.
Besides, a dozen individual economic crimes were discovered, involving 1
billion yuan (US$120 million).
| |
 |
|
|
|
|
Today's
Top News |
|
|
|
Top China
News |
|
|
|
|
|
|
|
|
|
