Guangzhou faces own pension scandal
6 April 2007
An investigation is underway in Guangzhou that could cost some leaders their jobs. Up to US$129 million (RMB1 billion) may have been misappropriated from the city's social-security fund and diverted to risky investments, reported the South China Morning Post, which quoted an insider as saying: "An investigation should be going on now. Someone will have to bear responsibility. This is the problem of the direct operators. It may not have anything to do with the party and government." The government has reportedly placed a gag order on newspapers and plans to inject US$64 million (RMB500 million) into the fund to offset the costs. Cui Renquan, the director of the social security fund bureau, said the missing funds date back several years and no money has gone missing since 2000.