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Jiang Zunyu, security chief of Shenzhen, is suspected of “serious discipline and law violations” – a euphemism for corruption.

Shenzhen security chief 'funnelled World Student Games deals through wife's bogus company'

The security chief of Shenzhen allegedly funnelled construction projects for the 2011 World Student Games worth billions of yuan through his family, state-run media reported today.

Jiang Zunyu is suspected of “serious discipline and law violations” – a euphemism for corruption – the China Daily newspaper reported, citing provincial investigators.

The case in the southern industrial hub bordering Hong Kong is the latest example of official corruption in China, where President Xi Jinping has pledged to root out graft at all levels.

More than half of the 14 billion yuan (about HK$17.7 billion) spent on the 2011 Summer Universiade, hosted by Shenzhen, went on new sports facilities, and Jiang was responsible for projects totalling two billion yuan, the paper said.

Jiang subcontracted the government contracts through a “bogus company” owned by his wife, who would then receive a commission, it added. His wife and daughter are also under investigation, the newspaper said.

Corruption is frequently linked to the construction industry in China, where new projects fuelled impressive economic growth for many years.

In May a National Energy Administration official whose job involved approving the construction of power projects, was found to have kept more than 100 million yuan in cash at his home.

Xi’s high-profile anti-corruption crackdown has caught some senior officials, although the campaign has been criticised in some quarters for a lack of transparency and for failing to introduce systemic reforms.

Despite the drive, the country has fallen 20 places to 100th in the this year Corruption Perceptions Index released today by anti-graft organisation, Transparency International.

“Too many corruption cases take place behind closed doors and the manner in which people are prosecuted needs greater transparency”, the group said.

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