18/10/2006
NEWS STORY
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The Shanghai Securities News is reporting that Yu Zhifei, manager of the Shanghai International Circuit, is assisting a police investigation into corruption, namely the alleged misuse of the city's multi-billion dollar pension fund. It is understood that a number of leading businessmen and officials are implicated.
It's claimed that the investigation centres on the alleged misuse of "at least" one-third of the $1.2bn pension fund in order to make investments in real estate and various other deals, in addition to illegal loans.
Only last month, the country's most senior Communist Party official in Shanghai, Chen Liangyu, was sacked after being accused of seeking benefits for relatives and various companies.
It is understood that Mr Yu, who is said to be a friend of Mr Chen, whose administration was responsible for bringing motor racing to China, is being questioned over "illegal operations" at the Shanghai circuit.