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Thursday, 26 July 2007, 13:16 GMT 14:16 UK

Top China boss removed from party

Chen Liangyu on 21 September 2006 The former Communist Party leader of Shanghai has been expelled from the party, state media reports.

Chen Liangyu was also sacked from all his government positions, according to state television.

He was fired last year after a probe into the alleged misuse of the city's pension fund. Many other senior figures were also accused of involvement.

Analysts say the latest move against Mr Chen could take him one step closer to standing trial on corruption charges.

The party has vowed to crack down on officials found guilty of corruption, which has become rampant since market reforms opened the economy in the 1980s.

'Illegal loans'

State media said Mr Chen, the former party secretary in Shanghai, had been handed over to judicial authorities and that his case had made a "very negative impact" on the image of the Communist Party.

Mr Chen 60, was fired last September after a government investigation into the alleged misuse of at least one third of Shanghai's 10bn yuan ($1.2bn) pension fund.

CORRUPT COMRADES

Beijing power play

The money was said to have been used to make illegal loans and investments in real estate and other infrastructure deals.

Mr Chen was accused of seeking benefits for companies and relatives, and for protecting corrupt officials.

The case also led to the removal and detention of several other officials, including the city's social security and labour chief.

Mr Chen was the first member of the Politburo, the party's top leadership council, to be dismissed for corruption since 1995.

Following his dismissal last September, he did not turn up at Beijing in March for the annual session of parliament.




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