Date
20 October 2017
Dai Xianglong has not been accused of wrongdoing and is cooperating with investigators looking into whether he used his position to enrich his family. Photo: Bloomberg.
Dai Xianglong has not been accused of wrongdoing and is cooperating with investigators looking into whether he used his position to enrich his family. Photo: Bloomberg.

China probing ex-central banker’s role in family finances

A former central bank chief is being investigated by Chinese authorities if he used his position to enrich his family.

Dai Xianglong, who headed the People’s Bank of China (PBoC) from 1995 to 2002, has not been accused of wrongdoing and is cooperating with the probe, Bloomberg reported Thursday, citing unnamed sources.  

The Central Commission for Discipline Inspection, the Communist Party agency spearheading President Xi Jinping’s two-year anti-corruption drive, is leading the investigation.

It follows an investigation into Ma Jian, deputy minister for state security.

In January, investigators said Ma was being probed for “serious law and discipline violations” — a euphemism for corruption.

Ma has not been reachable and there have been no further announcements about his case since he was stripped of his membership in the national committee of the Chinese legislature’s advisory body in February.

The investigators are looking into Dai’s term as PBoC governor, which ended in 2002, as well as his subsequent mayorship in Tianjin and his stint as head of the National Council for Social Security Fund.

He left that job in 2013, according to the official Xinhua News Agency.

Under Dai’s PBoC leadership, China escaped mostly unscathed from the 1997 Asian financial crisis and implemented sweeping reform to make its four big state-owned banks more competitive.

The banks were unburdened of billions of dollars in bad loans left over from decades of forced lending to state-owned enterprises, clearing the way for a string of record share offerings in Hong Kong.

Investigators did not immediately respond to a faxed request for comment about the case and a message sent to Dai’s former e-mail address at the social security fund was not returned.

A man who answered the phone at Dai’s old office at the fund said he could no longer be reached at that number and hung up.

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