The Shanghai authorities have pledged to make details about the city’s social security fund easily accessible to the public in the wake of the huge pension fund scandal that brought about the downfall of Chen Liangyu, the city’s party boss.

Bao Danru, deputy chief of the Shanghai Municipal Labor and Social Security Bureau, said information about the fund such as its annual earnings, total expenditure and subsidies, will be made public on its website or through regular news briefings.

According to Bao, the fund has been placed under the strict supervision of a specialized fiscal account and the Shanghai Social Security Supervisory Committee will also oversee levies, management, operation and expenditure.

In the past, the fund was managed through a single income account. Local social security authorities made decisions about revenue, withdrawal and payment of funds, which made it relatively easy for corrupt administrators to embezzle money.

Chen was sacked last year from his post for his involvement in the Shanghai social security fund scandal. Following Chen’s downfall, a growing number of officials and business people have been ensnared in the probe, including Shanghai’s former labor and social security chief Zhu Junyi, former director in charge of the city’s state assets management Ling Baoheng and two district governors.

They were accused of misappropriating 3.7 billion yuan (483 million U.S. dollars) from the fund to invest in risky real estate, road and other projects.

Source: Xinhua

Copyright Fund China 2009.

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