🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Probe of GOME founder spreads to provincial officials

Published 04/16/2009, 08:55 AM
Updated 04/16/2009, 09:00 AM

BEIJING, April 16 (Reuters) - A Chinese investigation into alleged financial misconduct by the founder of GOME Electrical Appliances has widened to include two provincial officials, Caijing magazine reported on Thursday.

The widening of the five-month probe, which has so far centered on allegations of stock market manipulation by detained Gome founder Huang Guangyu, could mean it is taking on a political cast.

Corruption investigations in China can be proxies for political struggles. In the most important recent case, a corruption investigation into a brash toll-road operator ended with the arrest and trial of Shanghai mayor Chen Liangyu, an ally of former Chinese president Jiang Zemin.

The chief of the disciplinary body in eastern Zhejiang province, Wang Huayuan, and the chairman of an advisory body in Guangdong province, Chen Shaoji were both detained for investigation this week in relation to Huang's case, Caijing said on its website.

The head of the Ministry of Public Security's economic investigation bureau and a subordinate were detained in January. That investigation had revealed "significant assets of unclear origin" held by Chen's family, Caijing said.

Chen was director-general of the public security department of Guangdong until 2000, while Wang served on the disciplinary body for Guangdong from 1998-2006.

GOME has been under new management since Huang's detention.

(Reporting by Lucy Hornby; Editing by David Fox)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.