Home » News » Communist Party Exec Fired for Bribery and Corruption by Former Chinese Chip Fund Executive

Communist Party Exec Fired for Bribery and Corruption by Former Chinese Chip Fund Executive

(Image Credit Google)
The Central Commission for Discipline Inspection, China's main anti-corruption body, published a statement on Thursday, January 19. (CCDI). According to the reports, it stated that Lu Jun, the former CEO of Sino IC Capital, had been expelled from the party for accepting bribes, embezzling money, and misusing state power (SCMP). The largest company in this industry in the country is the China Integrated Circuit Industry Investment Fund, or "Big Fund." It is wholly managed by Beijing-based Sino IC Capital and has a capital of more than 120 billion yuan ($17.7 billion). Local wafer foundries Semiconductor Manufacturing International Corp (SMIC) and Hua Hong Semiconductor have received more than 67% of the money from the Big Fund. As a result, some of China's leading semiconductor-related companies and chip startups use China as their primary financing platform. [caption id="" align="aligncenter" width="870"]China's Communist Party to wrap up key meeting as Xi strengthens power | The Japan Times Image credit- The Japan Times[/caption]

Investigating fraud

Investigators started looking into Lu, Wang Wenzhong, a partner at Shenzhen Hongtai Hongxin Equity Investment, a Big Fund affiliate, and Ding Wenwu, the fund's former president, in July 2022. Authorities were looking into accusations made against vice president Ren Kai of Sino IC Capital as of September 2022. Although Wang, Ding, and Kai have all been investigated for potential wrongdoing, the results have not been released. The scope of the investigations has sparked rumors and uncertainty about their effect on the country's efforts to develop an independent semiconductor supply base in light of Washington's escalating efforts to restrict exports of advanced chip-making technologies to China due to national security concerns. Findings Since joining the China Development Bank (CDB) in 2007, 55-year-old Lu has held a variety of administrative positions at the Shanghai office and its investment vehicle. In 2020, Lu was promoted to deputy director of the CDB's Development Fund Management Department. [caption id="" align="aligncenter" width="1440"]New anti-corruption purge in the Chinese Communist Party Image credit- Le Monde[/caption] According to the state anti-graft bureau, Lu bought and decorated corporate assets for his "personal enjoyment" and accepted presents that would have harmed the impartial discharge of official duties. According to the investigation, the former CEO invested personally in CDB clients and took advantage of his bank position to support friends and family members' enterprises. He was also charged with favoring family members over more qualified applicants while filling positions at the lender. It was unclear from the announcement if Lu's misconduct took place when he was working for CDB or Sino IC Capital, which CDB controls 45% of. After serving in both capacities for seven years, Lu left CDB in September 2021. The statement claimed that Lu's wrongdoing, which included taking bribes, stealing money, and misusing his position of authority, caused serious harm to the country.

By Monica Green

I am specialised in latest tech and tech discoveries.

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