Official arrested for causing great losses
Zhao Shuangju, former director of the Beijing Municipal Power Supply Bureau, has been arrested for a huge loss in State funds. The arrest was approved by local prosecutors, local media said.
Zhao, 64, who held the position for 13 years until 1999, was charged to have caused a loss of 457 million yuan (US$55 million) for the State-owned Beijing Power Supply Company in which he was manager.
Zhao's malfeasance was revealed to the public for the first time in a report put forward by Li Jinhua, Auditor-General of the State Auditing Administration, to the Standing Committee of the National People's Congress in June.
According to the report, Zhao provided guarantee to the Beijing-based Weikerui Company of 1.1 billion yuan (US$135 million) from 1994-96.
Afterward, as the guaranteed company was on the verge of bankruptcy, a local court required the Beijing Power Supply Company to shoulder part of the compensation responsibilities.
A loss of 457 million yuan (US$55 million) was then caused, sources said.
Sources with the Ministry of Supervision further proved that former officials of the Beijing Municipal Power Supply Bureau illegally invested a special electricity supply fund of 64 million yuan (US$8 million) in the Weikerui Company from 1993 to 1997.
The investment is not able to be recalled.
The power supply bureau also lent 30 million yuan (US$3.6 million) to the Weikerui Company illegally, sources said.