China rules out promotion for officials with family overseas

China rules out promotion for officials with family overseas

Friday, January 17, 2014 – 12:24

Reuters

BEIJING – Chinese officials whose spouses and children have emigrated will not be considered for promotion, state media reported, in the latest move to crack down on pervasive corruption.China has witnessed a series of cases where so-called “naked officials”, the term for government workers whose husbands, wives or children are all overseas, have used their foreign family connections to illegally move assets or avoid probes.

“They belong to a high-risk group for corruption. Around 40 per cent of economic cases and nearly 80 per cent of corruption and embezzlement cases involve naked officials,” the official Xinhua news agency cited Communist Party official Wang Huanchun as saying late on Thursday.

Xinhua said the revised rules had for the first time ruled out promotion for such officials.

The rules, unveiled by the ruling Communist Party’s powerful Organisation Department, which is in charge of personnel changes, also state that promotions must place greater emphasis on “moral integrity”.

Officials would only be eligible for fast-track promotion if they were “especially outstanding”, the report added.

Those who have a “poor reputation among the public” will also not be considered for promotion.

“It further said an obsession with economic growth data as the only benchmark in evaluating a local official’s performance should be avoided,” Xinhua said. “Greater emphasis should be put on their achievements in securing effective and sustainable economic development, people’s livelihoods and society, culture and environmental protection.”

President Xi Jinping has warned, like others before him, that graft is such a serious problem it threatens the party’s very survival, and has vowed to go after powerful “tigers” as well as lowly “flies”.

Xi said this week that the fight against corruption was grim and complicated and had to be solved quickly with “drastic medicine”.

However, the party has shown no sign of wanting to set up an independent body to fight graft, and has arrested activists who have pushed for officials to publicly disclose their wealth.

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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