What’s new: Cao Jiongfang, former Communist Party chief of Xiangtan in Central China’s Hunan province, is the country’s first municipal party secretary to be indicted for abuse of power due to debt violations, according to a report by local graft busters.
Hunan’s provincial commission for discipline inspection released the report on Wednesday reviewing last year’s anti-corruption efforts, which said Cao was the subject of a “key additional investigation” in connection with Xiangtan’s debt problems.
It’s unclear when Cao was given the additional charge of abuse of power. He was initially charged with bribery by prosecutors in provincial capital Changsha in November 2022, months after the Hunan graft buster announced it was investigating him.
The background: An anti-corruption documentary that aired in January 2023 revealed the details of Cao’s case. During his tenure as party chief of Xiangtan from March 2016 to July 2021, investments in government-led construction projects totaled 61.7 billion yuan ($8.7 billion), many of which turned out to be “vanity projects” or remain unfinished.
To support the implementation of these projects, Cao encouraged local businesses to engage in illicit borrowing, resulting in the city government becoming heavily indebted. Prosecutors also found that Cao accepted nearly 25 million yuan in bribes while seeking benefits for his brother in project financing and helping others obtain official positions.
Cao was expelled from the party and public office in November 2022, according to the documentary.
Contact reporter Wang Xintong (xintongwang@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
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