China corruption fight turns on ‘naked officials’ with family overseas

China corruption fight turns on ‘naked officials’ with family overseas

Thursday, May 22, 2014 – 20:47

Reuters

BEIJING – China has removed a senior”naked official”, one whose spouse and children have emigrated, from his post in the southern province of Guangdong, state media reported on Thursday, as the government’s anti-graft campaign turns its focus to a group it sees as a corruption risk.

Fang Xuan, deputy chief of the Guangzhou city Party Committee, will be taking early retirement, the official Xinhua news agency reported the Organisation Department of Guangdong’s Communist Party committee as saying in a statement on Monday.

Authorities found Fang to be a naked official, one of the first to lose his position as China’s government begins a large-scale campaign to “stamp out” such officials, said Xinhua. It said a “slew of investigations” had been launched against other officials in Guangdong.

President Xi Jinping last year launched a crackdown on pervasive corruption over concern about public resentment towards China’s stability-obsessed ruling Communist Party. But the drive is also seen as a tool to remove Xi’s opponents and replace them with his allies.

Naked officials will not be considered for promotion, state media reported in January, as they are viewed as flight risks whose ability to escape overseas could make them more inclined to engage in acts of corruption.

Xinhua said naked officials were a serious problem in the province of Guangdong, which borders Hong Kong.

Many officials have been taking advantage of a Hong Kong investment scheme to squirrel away more than $1 million each, which includes buying ‘residency’ in faraway African nations, since the scheme is not open to mainland Chinese residents.

 

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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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