Head of US$11 bil. China state firm found hanged dur­ing cor­rup­tion probe

The China Post - - LIFE GUIDE POST -

The head of a multi-bil­lion-U.S.-dol­lar state-owned main­land Chi­nese heavy ma­chin­ery man­u­fac­turer was found hang­ing in his of­fice as anti-cor­rup­tion in­ves­ti­ga­tors probed his firm, state media said Tues­day.

Po­lice be­lieve Wu Shengfu, 51, the gen­eral man­ager of China First Heavy In­dus­tries (CFHI), killed him­self, the Xin­hua News Agency re­ported.

CFHI makes ma­chin­ery for pur­poses rang­ing from nu­clear power equip­ment to petro­chem­i­cal and auto man­u­fac­tur­ing. Its Shang­hai-listed arm — of which Wu was chair­man — has a mar­ket cap­i­tal­iza­tion of 66.8 bil­lion yuan (US$10.8 bil­lion).

His body was found early Mon­day in his of­fice at the com­pany head­quar­ters in the north­east­ern city of Qiqi­har, Xin­hua said.

The rul­ing Chi­nese Com­mu­nist Party’s (CCP) feared anti-cor­rup­tion in­ves­ti­ga­tors are car­ry­ing out a two-month in­spec­tion of the com­pany, Chi­nese news por­tal thepaper.cn re­ported, adding that whistle­blow­ing al­le­ga­tions against Wu had cir­cu­lated online pre­vi­ously.

CFHI is one of the 53 en­ter­prises di­rectly run by the cen­tral main­land author­i­ties that are “key to na­tional se­cu­rity and econ­omy,” ac­cord­ing to its web­site.

Main­land leader Xi Jin­ping’s anti-cor­rup­tion cam­paign has en­snared a long list of se­nior as well as low-rank­ing of­fi­cials in­clud­ing the coun­try’s for­mer se­cu­rity czar Zhou Yongkang, who was sen­tenced to life in jail in June.

The drive has also led to a spike in of­fi­cial sui­cides to es­cape pos­si­ble crim­i­nal pro­ceed­ings and pre­vent the seizure of their ill-got­ten gains, to the ben­e­fit of their fam­i­lies.

Re­spected busi­ness news out­let Caixin said in Jan­uary that 50 party and gov­ern­ment of­fi­cials have been pub­licly de­clared to have died of “un­nat­u­ral causes” since 2012.

That prompted the party ear­lier this year to or­der a sur­vey of “un­usual deaths” among of­fi­cials, with de­tails to be pro­vided if the per­son was con­firmed to have com­mit­ted sui­cide.

In June last year, the chief of a US$2.0bil­lion Chi­nese cop­per pro­ducer fell to his death from a build­ing, re­port­edly fol­low­ing cor­rup­tion al­le­ga­tions.

Later in the year, Lou Xue­quan, a for­mer dis­trict CCP chief in the eastern city of Nan­jing, re­port­edly hanged him­self at his home hav­ing been dis­missed from his po­si­tion for ac­cept­ing money as gifts.

CFHI’s shares jumped on Tues­day, clos­ing up by their 10 per­cent limit at 10.22 yuan.

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