Off-shore tax havens of Chinese elite revealed

Last updated 18:54 22/01/2014

Relevant offers

Asia

MH370 search could end within days Firefighting, China-style Mt Everest tragedy: 13 bodies found Rescue mission turns to recovery Kiwis mourn Sherpa mates MH370 black box search continues Korean ferry: 274 still missing Avalanche kills 12 guides on Mt Everest Captain of sinking ferry faces investigation Bloody spectacle attracts thousands

A report by a US-based journalism group has linked relatives of China's president and other business and political leaders to offshore tax havens that is says ''helped shroud the communist elite's wealth.''

The International Consortium of Investigative Journalists said its report Wednesday was based on leaked documents showing the identities of nearly 22,000 owners of companies and trusts in the British Virgin Islands, Samoa and other offshore centres.

Such offshore companies are legal and often are used by Chinese companies to control subsidiaries abroad.

But the ICIJ said owners also include President Xi Jinping's brother-in-law and former Premier Wen Jiabao's son and son-in-law.

The report might fuel complaints about the wealth of China's communist elite at a time when Xi's government is carrying out a crackdown on corruption.

Chinese authorities moved quickly to block the country's public from seeing Wednesday's report.

 Access to the ICIJ website was blocked, as were foreign news reports about it.

A reporter posted an Internet link to the report on the popular Sina Weibo microblog service but received a message from the company saying other users were blocked from seeing it. Such offshore entities are legal and often are used by Chinese companies to control foreign subsidiaries, but activists and investigators believe corrupt officials also might use them to hide improperly obtained money.

''Most Chinese leaders and CCPC (Communist Party) members have planned their escape decades ago,'' said a comment left by a reader on the website of the Hong Kong newspaper South China Morning Post.

''It's all about exploiting the resources and people in China to benefit the privileged few.''

The report gave no financial details and stressed that ICIJ was not suggesting anyone named has ''broken the law or otherwise acted improperly.''

The group said it would release a full list of names on Thursday.

Communist leaders are intensely sensitive to suggestions they have profited from China's economic boom.

The ruling party insists public scrutiny of their financial affairs is not permitted.

Complaints about the lavish lifestyles of officials, Communist Party figures and military officers who drive luxury cars, own villas and send their children to elite foreign universities have fuelled political tensions.

Police have detained activists who called for party leaders to disclose their family wealth to China's ceremonial parliament.

The ICIJ's list could prompt heightened scrutiny of the individuals mentioned. 

Ad Feedback

Xi's brother-in-law, Deng Jiagui, a wealthy developer, owns 50 percent of a British Virgin Islands company, Excellence Effort Property Development, according to ICIJ. It said the other half is owned by two other Chinese developers.

The list also includes relatives of former President Hu Jintao and the late supreme leader Deng Xiaoping.

In 2012, Bloomberg News and The New York Times reported on wealth amassed by relatives of Xi and Wen, the former premier. The government blocked access to the websites of the two organizations.

- Reuters

Special offers

Featured Promotions

Sponsored Content