China's warning over graft probe

http://news.bbc.co.uk/go/rss/-/1/hi/world/asia-pacific/5380592.stm

Version 0 of 1.

An inquiry into a corruption scandal that led to the sacking of Shanghai's most senior official may also implicate others, China's Communist Party says.

Party secretary Chen Liangyu was dismissed on Monday over allegations he misused the city's pension fund.

He was the most senior official to be removed in a decade.

The party's anti-corruption chief told reporters that, as the investigation progressed, "we may find other people who are involved".

"No matter who is involved, we will punish them severely," said Gan Yisheng, Secretary-General of the Central Discipline Inspection Commission.

Power struggle

The government probe has centred on the alleged misuse of at least one third of the 10bn yuan ($1.2bn) pension fund, to make illegal loans and investments in real estate and other infrastructure deals.

Chen Liangyu, 60, is accused of seeking benefits for companies and relatives, and protecting people around him "who had seriously violated discipline and law", Xinhua reported on Monday.

CORRUPT COMRADES 1998: Beijing mayor Chen Xitong jailed for corruption2000: Scores of officials implicated in smuggling scandal in Xiamen2001: Mayor of Shenyang and his deputy sentenced to death for land deals <a href="/1/hi/world/asia-pacific/5378532.stm" class="">Beijing power play</a>

His former secretary, Qin Yu, was removed from his post as a district governor in August over his alleged involvement in the scandal.

Other officials, including the city's social security and labour chief, and prominent businessmen have also already been implicated.

The sacking of such senior Communist Party members are rare. The last was former Beijing party secretary, Chen Xitong, in the mid 1990s.

The dismissal of Mr Chen has been widely interpreted as part of an attempt by President Hu Jintao to boost his authority, correspondents say.

Shanghai - China's second city and financial centre - has been considered a stronghold for officials loyal to Mr Hu's predecessor, Jiang Zemin. Mr Chen was a protege of Jiang Zemin.

Mr Gan told reporters that the party leadership is "united in its fight against corruption".

He did not say who else might be implicated in the scandal, but he urged people not to believe rumours.