More than 4 000 corrupt Chinese officials have absconded overseas with at least $600-million worth of public funds in the past 20 years, according to a government report.
The study by the Chinese Ministry of Commerce is thought to underplay the scale of the problem, but it highlights growing concerns that corruption could undermine the authority of the Communist Party of China.
Describing China as the fourth-worst country in the world for capital flight, the report’s authors said that bureaucrats illegally transferred five billion yuan worth of dirty money to tens of thousands of firms registered in offshore finance centres such as the British Virgin Islands and the Bahamas.
The report’s author, Mei Xinyu, cited the case of three officials in Henan province who fled overseas. Among them was Cheng Sanchang, a former party chief who reportedly set up a company in New Zealand through which he transferred 10-million yuan before fleeing with his mistress. But other figures released in the past year suggest the problem of capital flight is far worse than the Ministry of Commerce’s report suggests.
In April a Bank of China official was extradited from the United States after allegedly embezzling four billion yuan.
It has been reported that 8 000 Chinese officials fled overseas in the first six months of last year.
According to the central committee of discipline inspection, 132 000 officials, including 17 ministers, were punished for corruption-related offences last year.
To tackle a problem that Prime Minster Wen Jiabao has declared a matter of ”life or death” for the party, the government has enforced regulations to freeze the passports of officials suspected of embezzlement.
But the authorities have found it difficult to track down corrupt officials overseas. In May police said only 230 suspects had been extradited in five years. Even the family of the prime minister was accused last month. The newspaper, 21st Century Economic Report, alleged that his son, Wen Yunsong, had used a false identity to purchase 830-million yuan in shares.
Despite government pledges to crack down on the problem, whistleblowers face criticism rather than acclaim.
In the most recent high-profile case, a Fujian Communist Party cadre, Huang Jingao, was accused by his superiors of a grave political error for publicising his six-year fight against corruption. — Â