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Deputy governor of Guangdong Development Bank arrested
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Wang Xin, executive deputy governor of Guangdong Development Bank was formally arrested on June 19 according to eastday.com. Coincidentally, it was the same day that the bank's former Chairman Li Ruohong tendered his resignation.

According to information made available by journalists Wang - the deputy governor of the property management department - was arrested along with a man surnamed Hou who had close relationship with the bank. Li Shujin, manager of general affairs department, is also currently absent on medical grounds.

A bank insider revealed that the judicial department searched Wang's home and office on June 5. The case concerns the handling of non-performing financial assets during the bank's restructuring.

As one of the bank's seven deputy governors Wang, 58, was in charge of integration, human resources and hi-tech. His arrest came as a shock to the bank.

Wang became the bank's executive deputy governor in August, 2002. He superintended the bank's assets disposal and development guidelines. According to available information, the bank had non-performing financial assets of up to 35.7 billion yuan. And at the end of February 2006, the bank shed its portfolio of non-performing financial assets, valued at approximately 56 billion yuan, to Guangdong Finance Investment (Holding) Corporation Ltd. There may have been irregularities during the course of this procedure.

Also on June, 19, Li Ruohong, who has chaired the bank for 10 years, tendered his resignation before his tenure was due to end. The reasons given were health issues and job transfer. His resignation was accepted by the Board of Directors on June 22. It is not clear what Li's future role will be. Former director of Bank of China Beijing Branch Dong Jianyue has taken over the post of Chairman.

Questions about the relationship between Li's resignation and Wang's arrest remain to be answered.

For more information, please consult the Chinese coverage at: http://news.eastday.com/c/20090626/u1a4460703.html

(China.org.cn by Li Xiaohua June 26, 2009)

 

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