Daily Management Review

China starts corruption therapy in the financial sector


The anti-corruption watchdogs in China once again turned their attention to the country's financial sector after launching an investigation against several high-ranking industry figures, South China Morning Post writes.

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PRC journalists came to this conclusion after it became known that Yang Jiacai, an assistant to the Chairman of the China Banking Regulatory Commission (CBRC), became an investigator in connection with the credit scandal in Hubei Province.

A Sunday comment on the People's Daily portal, which is considered to be the mouthpiece of the Communist Party, did not confirm commencement of the official investigation. However, Yang's "disappearance" is a sign that the fight against corruption in the financial sector has entered its crucial stage. 

The mainland news portal Caixin reported on Saturday that Yang became a suspect in the investigation because of his possible connection with the scandal on April 9. According to the report, Yang has been relieved of his duties in the CBRC. 

A number of senior officials in charge of financial matters have recently come under suspicion of receiving bribes, including Xiang Junbo, Head of the China Insurance Regulatory Commission, and Li Changjun, the former President of the Beijing branch of the Export-Import Bank of China.

"An anti-corruption campaign is being conducted in the financial sector, just as the wind that is sweeping through the building foreshadows a storm in the mountains", the commentary says. 

Since Guo Shuqing took over the leadership of the CBRC in March, the office reviewed almost all published documents related to regulation, reports the People's Daily.

In recent weeks, the commission has also issued new regulatory circulars, some of which have been aligned with recommendations for preventing corruption, the report said.

One circular calls to purge ranks of senior officials, referring to past cases where wives of senior officials were offered jobs in exchange for donations.
Earlier, Xinhua news agency reported that for 2014-2016 years the "Sky Net" anti-corruption campaign helped return 2,566 thievish Chinese officials and 8.6 billion yuan (1.25 billion dollars) hiding in more than 90 countries. Half of the officials came home, and wrote a confession. At the same time, government officials say that the "Sky Net" has noticeably reduced "the number of officials who are trying to run away with capital abroad" because "they understand that they will be found". 

According to Chinese law, illegal "income" of more than 100 thousand yuan means 10 years of imprisonment for an official. Moreover, even a bribe of a little more than 200 yuan can result in jail placement. In 2016, the PRC clearly determined size of a bribe that will lead to the supreme penalty. The sum starts from 460 thousand dollars. "Since 2000, about 10,000 officials were shot for corruption in China, another 120,000 received 10 to 20 years of imprisonment", - tell news agencies, referring to the PRC’s statistics. Also, statistics show that China has one way or another punished 1 million officials since 2012. 

There is another very powerful psychological instrument of pressure. The watchdogs confiscate all property from the corrupted officials, and the family gets an invoice of 8 yuan for 2 bullets with which the verdict was carried out. The result is that the scale of corruption is decreasing, and not only at the expense of arrests. For example, the Communist Party restrained Chinese officials’ craving to luxury. They are not allowed to arrange lavish dinners, built luxurious cottages, purchase expensive apartments and even build new buildings of regional and city party committees. Any citizen can report any violations to the Party Control Committee, and then the law enforcement officers start to verify details.

source: scmp.com, caixinglobal.com