Wages of corruption

The recent collapse of the 13-storeyed building in Shanghai should serve as a cautionary tale for the increasingly prosperous real estate market. The list of names, of those behind the venture, released on Tuesday reveals local officials to be involved as shareholders in the construction firm. That should focus public attention on the play of corruption behind the accident.

It is not rare to find abuse of power to be the root cause of many fatal accidents in fields as diverse as construction and coal mining. An alliance of power and capital has become the easiest way for business people to maximize profits at the lowest cost and for the officials involved to get their "dues" for leasing the power in their hands.

In this accident, the second largest shareholder of the real estate development firm has been confirmed to be an assistant to the local township leader. The names of some local government officials are also found to be among the shareholders. Little wonder that a firm with a registered capital of only 8 million yuan was able to secure a housing project worth hundreds of millions.