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China acts to stem the tide of officials fleeing with cash

As many as 10,000 corrupt government officials have fled China with $100 billion.

By Staff writer of The Christian Science Monitor / October 31, 2008


When Yang Xianghong, a middle-ranking Chinese Communist Party official, slipped away from a government delegation trip to Paris three weeks ago, he said he was visiting his daughter.

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When he didn't come back, though, his disappearance sparked much speculation on state-run media that Mr. Yang was the latest escapee in a growing exodus of officials fleeing corruption probes.

If true, he joins as many as 10,000 corrupt Chinese officials who have fled the country over the past decade, taking as much as $100 billion of public funds with them, according to an estimate by Li Chengyan, head of Peking University's Anticorruption Research Institute.

More unexpected, however, was the heavy press coverage that Yang's walkabout attracted in a country where the government is generally reluctant to wash its dirty linens in public.

That suggests that "the government is sending a signal" that it regards "the number of officials fleeing as a very important problem which needs to be solved," says Mao Zhaohui, director of anticorruption studies at Beijing's Renmin University.

Corruption is pervasive at almost every level of the government, and it is a major factor eroding faith in the ruling Communist Party. Earlier this year, after thousands of schoolchildren died in the Sichuan earthquake, the Internet was ablaze with accusations that local officials had taken bribes to approve substandard materials for school construction.

Chinese President Hu Jintao has repeatedly declared that the fight against fraud is a top government priority and courts have handed down heavy sentences against prominent offenders.

Last year, the former head of the Chinese Food and Drug Administration, Zheng Xiaoyu, was executed after being found guilty of taking bribes to approve thousands of new drugs.

Stiff punishments, however, do not appear to have curbed the phenomenon. Just this week, the deputy president of the Supreme Court and the head of parliament's budget committee were fired for corruption in an indication of how far the rot has spread even among the highest levels of government.

The exact nature of the accusations leveled against Yang, party secretary of a district in Wenzhou, a boomtown on China's east coast, remains unclear. State media reported that he was questioned by a team from the region's party disciplinary committee three days before his trip.

The Wenzhou municipal government sent two officials to Paris to persuade Yang to return, local newspapers reported, along with a doctor to treat a bad back that he said prevented him from traveling home. But they had no success.

The Wenzhou authorities subsequently confiscated all local officials' passports, according to Oriental Outlook, a magazine owned by the government's news agency, Xinhua, in a bid to stop others from following Yang's example.

"Passport management is the way to handle this ... but that is very complicated," says Dr. Li, since many government employees have both official and personal passports.

The problem is compounded by the fact that China has signed extradition treaties with only 31 countries. They do not include the US, Canada, or Australia – three popular destinations for Chinese officials on the lam. Only four western European nations have such agreements with Beijing.