Arrest of China's top banker reveals corruption in Communist Party

One of China’s top banker, Lai Xiaomin, was reportedly arrested for embezzling public assets after which the case revealed the rampant corruption in the Chinese Communist Party (CCP). According to reports, Xiaomin was the chairman of China Huarong Asset Management and he has also severed as the CCP chief inside the company. 

He has reportedly been accused of taking USD 256 million in cash and gifts. A Chinese media outlet reported that the banker was also accused of exploiting various professional positions and accepting ill-gotten gains, including money and goods worth 1.79 billion yuan, of which 104 million yuan was eventually not received.

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It was further noted that the embezzlement took place between 2008 and 2018 when he headed Hong Kong-listed asset management company and was also the director-general of the People’s Bank of China’s banking supervision department. Moreover, Xiaomin was accused of embezzling public assets worth over 25.13 million yuan between the same time frame. 

Chinese individuals raided 

Xiaomin’s arrest comes after the Indian Income Tax Department conducted raids against some Chinese individuals and their local associates for allegedly running an estimated Rs 1,000 crore worth money laundering racket using shell or dubious firms. The Central Board of Direct Taxes (CBDT) said the searches were launched based on “credible inputs that a few Chinese individuals and their Indian associates were involved in money laundering and hawala transactions through a series of shell entities”. 

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It said that “subsidiary of Chinese company and its related concerns have taken over Rs 100 crore bogus advances from shell entities for opening businesses of retail showrooms in India”.

Further, the CBDT added, “Search action revealed that at the behest of Chinese individuals, more than 40 bank accounts were created in various dummy entities, entering into credits of more than Rs 1,000 crore over the period”. 

(With ANI inputs/ Image: AP) 

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