[photopress:Shanghai_Real_Estate.jpg,full,alignright]According to news reports, Shanghai’s city’s Party disciplinary commission and government supervision department, have teamed up with auditing, taxation and real estate departments for a thorough investigation into possible legal and regulatory violations by developers and officials.
This may prove to be a rich and fertile field.
Recently, local newspapers reported that Yin Guoyuan, former deputy director of the Shanghai Housing, Land and Resources Administration Bureau, was expelled from the Party and transferred for his alleged crime.
Local newspapers, quoting sources from the disciplinary commission of the Shanghai Party Committee, reported that Yin Guoyuan had been accused of helping others obtain lucrative land deals in exchange for gifts including cash, company shares, apartments and cars.
Yin Guoyuan was not the only senior local official and businessman exposed in property market scandals.
Zhou Zhengyi, Shanghai’s richest tycoon, Wu Minglie, chairman of New Huangpu Group, and Zhu Wenjin, a section chief of the city’s land bureau, were arrested in the past year for corruption.
The 21st Century Business Herald said, quoting inside sources, that the ongoing investigation of illegal activities in the property sector is focused around three kinds of cases.
Illegal land leasing, or selling land at low prices. Before Shanghai started its public bidding for land a few years ago, many land deals were concluded simply with guanxi, or personal connections.
Officials selling sensitive information about the property market to developers, including the improper disclosure of subway construction blueprints before the plan is made public.
Officials who have bought properties at prices much lower than market level.