By Jiang Yunzhang (降蕴彰)
Economic Observer Online
Dec 13, 2011
Translated by Song Chunling
Original Article: [
Chinese]
The EO has learned from a source inside the Grain Administration of Henan Province (
南省粮食局), that Cao Pusheng (曹濮生), the former head and party secretary of the administration is being held and investigated on suspicion of corruption according to shuanggui (双规), an extra-legal form of detention used on members of the Chinese Communist Party.
Cao was detained by authorities ahead of the detention of Li Changxuan (李长轩), the general manager of the Henan branch of China Grain Reserves Corporation (
Sinograin) (中储粮河南分公司总), who, as the
EO reported late last week, is also being held under shuanggui.
According to the EO's source, Cao was first detained for investigations in May this year after more than 10 employees under the director put their names to a letter accusing him of being involved serious corruption, on Jun. 23, the Henan provincial government issued a formal announcement declaring that Cao had been "removed" from his position.
According to the accusations of those who had complained about him, Cao illegally occupied, resold and embezzled state property, leading to large losses of state assets, along with a series of other violations of discipline, he was also said to have made official appointments according to personal connection or sold them to the highest bidder.
There have been many other instances of corruption in the Henan grain industry ahead of this latest scandal. One of the most serious and shocking cases is the corruption of Wang Yongcheng (王永成), the former head of Grain Administration in the city of Zhoukou (周口). Wang was sentenced to 18 years in prison in 2009 after being found guilty of accepting bribes of over 1.38 million yuan. That case caused a large stir in the grain industry across the country.
According to our source at the Henan Grain Administration, the Henan Discipline Inspection Commission has yet to complete their investigation into Cao.
Miao Yongqing (苗永清) has replaced Cao as the new head of the province's grain administration.
