Huang Genshou, director of the Jinhua Labor and Social Security
Bureau in Jinhua, Zhejiang Province, is under investigation for
involvement in a 100 million yuan embezzlement scandal, it was
reported on Monday.
The provincial discipline inspection commission is leading the
ongoing investigation. According to an anonymous official with the
Zhejiang Labor and Social Security Department, Huang played the
stock market with the embezzled funds.
An official with the Jinhua Discipline Inspection Commission
confirmed that Huang is being held to assist the investigation, but
that no conclusions had yet been drawn. Another insider implied
some higher-ranking officials are also implicated in the case.
Local officials said nothing about the scandal and had no idea
about the ongoing investigation involving Huang.
In another development, it has been confirmed that Lu Fulu,
former Jinhua deputy executive mayor, who resigned from office in
November, is also under investigation concerning the
misappropriation of funds.
During his tenure, Lu, who was in charge of the city's social
security and finance, was assigned to head Golden Trust
Securities.
According to the Zhejiang Labor and Social Security Department,
the amount taken from Jinhua's social security coffers was found to
match the amount Golden Trust Securities used to play the stock
market.
At the end of 2005, Golden Trust Securities was ordered to
suspend business for illegal operations and heavy economic
losses.
"The suspension of Golden Trust led to the discovery of the
social security fund embezzlement," said an official inspecting the
matter.
A recent audit report found that around 7.1 billion yuan (US$900
million) of the country's two trillion yuan (US$253 billion) social
security fund has been misappropriated.
The misuse of social security funds has come under intense
scrutiny this year. In September, a Shanghai scandal, involving
3.2-billion-yuan in city fund loans being misused, brought down
Chen Liangyu, Shanghai Party Secretary and member of the Political
Bureau of the Chinese Communist Party Central Committee.
The state council has consistently warned social security fund
administrators against risky investments that might jeopardize the
safety of the funds.
"In terms of managing social security funds, safety always comes
before increasing the value," said Tian Chengping, Minister of
Labor and Social Security, while addressing Chinese Academy of
Science graduate students in Beijing.
(Chinadaily.com.cn November 27, 2006)