Fallen SASAC chief Jiang Jiemin; Xi’s anti-graft sweep to turn focus to PLA

Fallen SASAC chief Jiang Jiemin

Staff Reporter

2013-09-02

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Jiang Jiemin. (Photo/CFP)

China’s disciplinary authorities have announced a corruption probe into Jiang Jiemin, head of the commission overseeing the country’s biggest state-owned enterprises. Until March this year, the 57-year-old Jiang was the chief of state-owned China National Petroleum Corporation, the country’s largest integrated energy company. Born in eastern China’s Shandong province in 1955, Jiang graduated from the University of Shandong and also underwent an in-service postgraduate course for ministerial officials and provincial heads at the CPC Central Committee party school.As a party member, Jiang began his career as a technician at Shandong’s Shengli oil field in December 1972 and worked his way up to become an assistant to CNPC’s general manager in February 1999, leading a team that oversaw the initial public offering of PetroChina, CNPC’s listed arm.

Jiang was named deputy governor of western China’s Qinghai province between June 2000 and April 2004, after which he returned to CNPC as a deputy general manager, later becoming the general manager in 2006 and chairman of PetroChina in May 2007. He was appointed to the newly created post of CNPC chairman in November 2011, a position he remained in until March this year, when he was named chief of the State-Owned Assets Supervision and Administration Commission, a body which oversees 117 state companies.

Jiang was also the only head of a state-owned energy company selected as a full member of the CPC Central Committee at the 18th National Congress last November.

The Central Commission for Discipline Inspection, China’s top disciplinary watchdog, announced Sunday that it was investigating Jiang for a “serious discipline violation” — party code word for graft. Many had labeled Jiang a “dead man walking” even though he was made head of the SASAC in March because he was not named party secretary like his predecessor.

Last year, Jiang was embroiled in a bizarre incident which reportedly led to the death of the 23-year-old son of Ling Jihua, chief of staff of former Chinese president Hu Jintao. Hong Kong’s South China Morning post claimed that Jiang was placed under suspicion by authorities after he allegedly paid off the families of two women who were said to have been engaging in sex acts with Ling when he crashed his Ferrari in Beijing. The paper said that Jiang transferred millions of dollars from CNPC’s accounts to the women’s families and attempted to cover up the crash to prevent the news from being leaked to the public.

Xi’s anti-graft sweep to turn focus to PLA

Staff Reporter

2013-09-02

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Gu Junshan. (Internet photo)

China’s sweeping anti-corruption campaign will turn its focus back to the People’s Liberation Army following the third plenary session of the CPC Central Committee in November, reports Hong Kong newspaper Ming Pao.

Since being named Communist Party chief last November, Xi Jinping has cracked down on graft across all key areas, including state-owned enterprises, high-ranking party officials, and military personnel.

Xi, who also holds the position of Central Military Commission chairman, has already instituted a ban an alcohol and luxury cars in the army and launched an investigation into property ownership by high-ranking PLA officials and major PLA construction projects. During the Chinese New Year break in February, disciplinary authorities bagged their first big name in the military by detaining lieutenant general Gu Junshan, deputy head of the General Logistics Department of the PLA.

Sources say the ongoing anti-corruption campaign will return its focus to the military towards the end of the year, most likely at the conclusion of the thrid plenary session of the CPC Central Committee, which the party’s Politburo decided last week would take place in November. One of the key targets in the new wave of crackdowns will be former Central Military Commission vice chairman Xu Caihou, who is said to have accepted bribes from Gu Junshan.

The investigation into Gu has reportedly hit several setbacks, with the former investigator in charge of the case, Liu Yuan, falling out of favor with leaders after being linked to disgraced former Chongqing party secretary Bo Xilai, whose corruption trial completed last week in the Shandong capital of Jinan. Liu, the political commissar of the PLA’s Academy of Military Sciences and son of former Chinese president Liu Shaoqi, surprised many when he failed to secure a spot on the Central Military Commission last year.

According to supposedly leaked details, Gu’s corrupt activities are said to involve hundreds of billions of dollars. The lieutenant general is alleged to control several companies and owns dozens of properties in Beijing, as well as a slew of mistresses. He has been accused of attempting to bribe several high-ranking military officials, which could explain his meteoric rise in the PLA, including five promotions in eight years after joining the General Logistics Department in 2000.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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