Greater China

Cosco corruption cases create stir

Beijing: Details have emerged of the downfall of Xu Minjie, the former vice president of China’s state run shipping giant Cosco.

The Central Commission for Discipline Inspection (CCDI) recently expelled Xu from the party and transferred him to judicial authority after investigations.

CCDI said its investigations found Xu had taken advantage of his former position at the company to fake company reimbursements for personal use.

Chinese website iFeng quoted an unnamed Cosco official saying Xu put several personal expenses including his wife’s beauty salon expense as company expenses. The official pointed out that the accusation of “fake company reimbursements for personal use” is rare in the corruption cases in China.

Chinese financial media Caixin reported that Xu was investigated because of his illegal operations when was serving as the managing director of Cosco Pacific from 2007 to 2010. It also quoted a source inside Cosco that Xu was promoted to the vice president of Cosco Group as he took care of former Cosco president Wei Jiafu’s two daughters in the US. “Xu’s education background and professional ability weren’t that competitive in the management of Cosco,” the source said.

Corruption allegations were pointed towards Wei Jiafu last year with reports that the former Cosco boss was restricted from leaving China. Cosco Group later denied the report.

According to the source, Wei has now moved to the US.

Cosco Group has been involved in a series of corruption scandals in recent years. Former general manager of Cosco Dalian, Meng Qinglin, was arrested for corruption last year and former vice general manager of Cosco Qingdao, Song Jun recently received a suspended death sentence for corruption. [11/06/14]

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