What’s new: Sheng Guangzu, a former top official overseeing China’s vast railway system, is under investigation by the country's top anti-graft body for suspected severe violations of discipline and laws, according to a Friday government statement.
Sheng, 72, retired six year ago from the post of Communist Party chief and general manager of China Railway Corp., the state railway operator. He was previously the country’s minister of railways.
The former executive is the highest-ranking official of China’s railway system to be investigated since the downfall of Liu Zhijun, Sheng’s predecessor at the now defunct Ministry of Railways.
It is unclear what allegations are being investigated. Two railway industry insiders said they were surprised by the news.
The background: Sheng spent more than 30 years in China’s railway system and 10 more years in the country’s General Administration of Customs.
Sheng joined the Ministry of Railways in 1994 after 20 years working in local railway bureaus. In 2011, he replaced Liu, who was brought down on corruption charges, as minister of railways.
The high-profile corruption case of Liu, the mastermind of China’s high-speed railway construction frenzy, triggered concerns over the excessive power of the Ministry of Railways. In 2013, in a major government reshuffle, the ministry was split into a business entity, China Railway, and a regulatory body, the National Railway Administration.
Sheng was named the first chief of China Railway. During his tenure, Sheng pushed forward a campaign to export China’s high-speed rail technology. With a rapid investment expansion, China Railway struggled to deal with a buildup of debt.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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