Family of Outgoing Chinese Premier Alleged to Have Amassed $2.7bn Wealth During His Term
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The extended family of outgoing Chinese Premier Wen Jiabao has controlled assets worth at least $2.7 billion, according to a New York Times exposé which cited corporate, regulatory records and unidentified people familiar with the family’s investment history.
In a seven-page exposé on one of China’s top politicians, the New York Times gave an account of how the family of Wen Jiabao, a populist leader often referred to as “Grandpa Wen” by the press, had become “extraordinarily wealthy” during his time in office.
The extended family of outgoing Chinese Premier Wen Jiabao has controlled assets worth at least $2.7 billion, according to a New York Times exposé which cited corporate, regulatory records and unidentified people familiar with the family’s investment history.
In a seven-page exposé on one of China’s top politicians, the New York Times gave an account of how the family of Wen Jiabao, a populist leader often referred to as “Grandpa Wen” by the press, had become “extraordinarily wealthy” during his time in office.
Investments by Wen’s immediate family spanning the banking, diamond, tourism and telecommunications industry were said to be worth at least $2.7 billion, according to the Time’s analysis of company and regulatory filings from 1992 – 2012.
Wen was named vice-premier in 1998 before being promoted to the premiership in 2002. As the head of the Chinese government and cabinet, Wen is seen as a progressive leader and widely regarded as the liberal voice behind China’s political and economic reforms.
[quote] The exposé comes as a particular embarrassment for Wen, who has campaigned aggressively against the rampant corruption that infuriates so many ordinary Chinese. [/quote]
In March, he gave a speech to the State Council in which he warned that the “greatest danger” facing the Communist party is graft and that the party could be dethroned if no action is taken. “If this issue is not resolved, the nature of political power could change,” he said.
Giving one example, the Times said partnerships controlled by Wen’s relatives and their friends and colleagues held up to $2.2 billion in stock in Ping An Insurance (Group) Co of China Ltd in 2007, the last year those stock holdings were disclosed in public documents.
The Times also noted how Wen’s mother, a former schoolteacher in northern China, became “outright rich, at least on paper”.
Wen’s 90-year-old mother had one investment in Ping An that was worth $120 million five years ago, the newspaper added.
Public anger about corruption and cronyism is on the rise in China, fanned by social media that helps spread stories of official wrongdoing despite the best efforts of the country’s powerful censors.
The “great firewall of China” has since blocked access to the Times’ English and Chinese sites, as are references to the report, including Wen and his family, on micro-blogging sites.
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Read the full exposé by the New York Times here.
