Chinese export credit insurance chief sacked on corruption probe

Tang Ruoxin, the head of the state-run China Export and Credit Insurance Corporation (Sinosure), has been sacked following an investigation into a credit guarantee contract. Unconfirmed reports have also been circulating that Mr Tang was arrested on suspicion of corruption just days after his removal from Sinosure. The China Insurance Regulatory Commission (CIRC) confirmed that Mr Tang had been sacked from his post and alleged that he had “caused the state heavy losses in seeking benefits for special contracts”. According to local press reports, Mr Tang is being held responsible for causing a US$245mn loss to state run banks after he provided a credit guarantee to Shanghai Hongsheng (Norcent) Technology Co’s application for a $245mn bank loan. The company later defaulted on the loan and Mr Tang’s involvement in arranging the contract has been under investigation for several months. Mr Tang has worked as the head of Sinosure since its inception in 2001, when China became a member of the World Trade Organization. CIRC chief Wu Dingfu has promised to step up the fight against corruption to protect the insurance industry from serious risks caused by wrongdoing. Following his arrest, Mr Tang is also reported to have been stripped of his membership of the Communist Party of China, a move regarded by many commentators as a sign that he will be prosecuted fpr corruption.