The first banking scandal of 2006

The Bank of China in Caijing’s crosshairs

The cover of Caijing magazine’s March 6 issue screams China’s “first banking scandal of 2006”.

The article inside is titled Big Thief Zhu Dequan and subtitled “It’s difficult to believe: a small company with almost no capital took bills of exchange of unbelievable amounts from the bank without arousing anyone’s suspicion”.

Apparently, a man named Hu Weidong (胡伟东) who was head of the Bank of China’s Shuayashan county branch in Heilongjiang Province embezzled 432 million yuan. The embezzelment was done in collusion with a small local private enterprise led by Zhu Dequan (朱德全), who was a local entrepreneur-celebrity. The fraudulent bills of exchange were handed over to Zhu’s company over a period of two years.

Five people including Hu were arrested immediately after the crime was discovered in February. 17 days after their arrest, the police tracked down and detained Zhu in Changchun.

Ciajing magazine is well known for its investigative business reporting. It’s an encouraging sign that dodgy activities at the state-owned Bank of China feature so prominently on the cover during the ‘Two Meetings’ taking place this week.

Thanks Comrade N for the tip.