First Arrest Made in Shanghai Corruption Scandal – Reuters

From Reuters:

Chinese authorities have made their first known arrest in a corruption scandal involving Shanghai’s social security funds, detaining one of the country’s richest men.

Zhang Rongkun(张荣坤), chairman of Fuxi Investment Holding Co., has been arrested, the private investment firm said in a one-sentence statement obtained on Saturday. Company spokesmen could not be reached for comment.

Ranked China’s 16th richest man by Forbes magazine last year with an estimated net worth of $605 million, Zhang was being investigated for alleged impropriety involving a 3.2 billion yuan ($405 million) loan of city funds to build a toll road. [Full text]

Read also a Chinese article:”Four Years of Zhang Rongkun – a Laughter and Cry Road ” from Southern Weekend, which says “Zhang Rongkun was granted an huge amount of entrusted loan , then a modern version of the “millions of pounds” story started. That was in 2002. Zhang, 29, became the vice chairman of the Shanghai Federation of Industry. From then on, Zhang turned into a Shanghai business elite from an unknown Suzhou businessman. ”

(Photo of Zhang Rongkun)

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