Most of the suspects involved in the misappropriation of more than 3 billion yuan ($386 million) from Shanghai’s social security fund have been turned over to judicial departments for prosecution, Mayor Han Zheng was quoted by the Shanghai Securities News as saying…
In July, investigators discovered that 3.45 billion yuan had been misappropriated from Shanghai’s social security fund, which is meant to cover a population of 12 million people, for illegal loans and investment.
A company operated by the municipal labor and social security bureau illegally lent the money to Shanghai Feidian Investment Development Co Ltd, a company controlled by business tycoon Zhang Rongkun, who ranked No 16 on the Forbes China Rich List in 2005. Zhang was the first person arrested in the scandal, which eventually ensnared Shanghai’s former Party chief, Chen Liangyu. [Full Text]