Caixin
Nov 04, 2021 09:16 PM
FINANCE

China’s Anti-Graft Agency Has Probed 36 Major PBOC-Linked Cases

China’s financial regulatory sector has become one key area of focus for the government’s anti-corruption actions in recent years. Photo: VCG
China’s financial regulatory sector has become one key area of focus for the government’s anti-corruption actions in recent years. Photo: VCG

A task force from China’s top anti-graft agency tackled 36 corruption cases linked to key areas of the central bank’s regulatory system over a four-year period since October 2017, a senior anti-graft official said.

Xu Jiaai, who led the task force dispatched by the Central Commission for Discipline Inspection (CCDI) to the People’s Bank of China (PBOC), said some of the cases were related to currency issuance, payment, clearing and fintech, according to a video interview (link in Chinese) posted on the CCDI website on Tuesday.

Twenty-two officials and executives involved in the 36 cases were punished and saw their cases transferred to prosecutors for further investigation, according to Xu. Punishments included expulsion from the Chinese Communist Party.

China’s financial regulatory sector has become one key area of focus for the government’s anti-corruption actions in recent years.

In the interview, Xu also revealed details of several high-profile corruption cases in the central bank network. In one case, Yang Mingji, a former president and party committee chief of the PBOC’s Lanzhou branch in the northwestern province of Gansu, was accused of illegally pocketing 32 million yuan ($5 million) by reselling commemorative coins and banknotes that had been issued to mark the 2008 Beijing Olympic Games. Yang fell under investigation in December last year.

In another case, Tao Xiaofeng, a former chairman of state-owned asset manager Huida Asset Management Co. Ltd., was accused of taking 1.6 million yuan in bribes from three payment institutions, said Xu. Tao allegedly abused his power and illegally sought benefits for the three institutions, including Shanghai Chang Gou Enterprise Services Co. Ltd.

Tao was expelled from the party and removed from public office earlier this year. Before he joined Huida in 2012, Tao served at the PBOC for 27 years.

Tao’s case came to light while anti-graft regulators were investigating the case of Yang Biao, a former central bank online payment regulator. In December, Yang Biao admitted in court that he had accepted bribes.

Sources with knowledge of the issue told Caixin that Tao had asked Yang Biao to grant permission to Shanghai Chang Gou’s application for a payment business license. In August 2011, Shanghai Chang Gou received the license. In return, the management at Shanghai Chang Gou offered Tao an apartment in Beijing, the sources said.

Contact reporter Tang Ziyi (ziyitang@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)

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