Former head of China Development Bank expelled from Communist Party, facing prosecution

He Huifeng

The former head of a Chinese state bank has been expelled from the Communist Party for serious violations of discipline and laws, and is set to face criminal prosecution, according to the country’s anti-corruption watchdog.

Hu Huaibang, a former chairman of China Development Bank (CDB), is accused of exploiting his position for financial gain and taking bribes directly or through his relatives, the Central Commission for Discipline Inspection said in a statement on Saturday.

“The investigation found that Hu violated the eight-point code on party and government conduct, sought profits for others in personnel promotion by taking advantage of his posts, wantonly traded power for money, and connived with his relatives, allowing them to use his influence to seek personal gains,” it said.

CDB plays a key role in the financing of infrastructure schemes at home and abroad. Photo: Getty Images

CDB is one of China’s three policy banks, and issues loans at the direction of Beijing. It plays a crucial role in the financing of domestic infrastructure schemes and strategic investments overseas, including projects under the Belt and Road Initiative.

The other two policy banks are the Agricultural Development Bank of China and the Export-Import Bank of China.

Judge behind US$270 million business empire sacked, facing prosecution

Hu, 64, joined the CDB in 2013 and retired in September 2018. A month after he stepped down, it was revealed that he had been linked to the corruption case against former Gansu Communist Party secretary Wang Sanyun, who was sentenced to 12 years in prison in April last year after being found guilty of taking 66 million yuan (US$9.5 million) in bribes.

As well as the corruption allegations, the CCDI said Hu had indulged a decadent lifestyle and had refused to cooperate during its investigation.

The anti-corruption watchdog’s records show that about 20 vice-minister level officials were punished last year, including former Yunnan party boss Qin Guangrong.

A total of 485,000 party members of different ranks faced disciplinary action in the year, with 19,000 cases being handed to prosecutors.

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