Shanghai rocked by fund scandal
29 August 2006
One of Shanghai's nineteen district governors, Qin Yu, was removed from his post in the biggest scandal in the city in decades. Investigators are looking into misuse of the city's pension fund, worth billions of dollars, the Financial Times reported. Mr. Qin served as assistant to the city's mayor in 2002, Chen Liangyu, who is currently Shanghai's most senior official and sits on the Communist party Politburo in Beijing. Shanghai, China's financial center, was expected to set an example of good management but the city's pension deficit has grown to US$88 million, the newspaper reported. The man in charge of the Shanghai Labour and Social Security Bureau is under investigation for using funds to speculate in real estate.
