Chen Liangyu was expelled from the Communist Party of China (CPC) and dismissed from all government posts yesterday, the CPC Central Committee said.

The former Shanghai Party chief's case has been handed over to prosecutors, a CPC Central Committee press release said.

The CPC Political Bureau, the highest decision-making body of the Party, reviewed the investigation report on Chen's case.

The CPC Central Commission for Discipline Inspection was in charge of the probe that began in September 2006.

Chen's punishment was in accordance with the CPC Constitution and Regulation on Discipline and Law on Civil Servants.

According to the probe:

Chen misused his power to favor the Shanghai Municipal Bureau of Labor and Social Security and illegally granted huge loans from the Shanghai social security fund to private companies;

He helped private firms buy shares of State-owned enterprises, causing great damage to public assets;

Chen abused his power to make money from project examination and approval, fund allocation, investment attraction, land planning and promoting inferior officials;

He and his family both got bribes in "huge amounts of money";

Chen offered help to his family members trying to make money from businesses;

He was "morally decadent" and took advantage of his post to "philander" and trade power for sexual favors;

Chen shielded officials close to him even after they had violated laws and Party disciplines.

Chen was guilty of serious violation of Party discipline, caused great loss to the people and the nation, tarnished the image of the CPC, and his actions had "an extremely bad social influence," the CPC Central Committee statement said.

Chen was secretary of CPC's Shanghai Municipal Committee and member of the CPC Political Bureau when the corruption scandal broke out.

"The battle against corruption has a direct bearing on public feeling, the CPC's survival and the country's long-term social stability," it said. And Chen's punishment further demonstrates the CPC's resolution to fight corruption.

CPC organizations at various levels must have a deep understanding of the protracted, complex and hard nature of the battle against corruption, the statement said.

Xinhua

(China Daily 07/27/2007 page1)