Hu Wenming, the former head of two state-owned shipbuilders in China, has been expelled from the Communist Party for allegedly abusing power for “money and sex”.
The party’s Central Commission for Discipline Inspection announced on its website that Hu is suspected of committing serious crimes and now under formal investigation by Chinese prosecutors.
“We have decided to expel Hu from the party,” the commission said in a web statement on Monday. “His illegal gains have been confiscated … and transferred to the authority.”
In the one-party state, the expulsion from Communist Party for a state-owned company employee is often followed by conviction, jail time and heavy fines.
Hu had been China Shipbuilding Industry Corp (CSIC) chairman and party chief before the formal merger of his company and China State Shipbuilding Corp (CSSC), China’s two largest state-owned shipbuilding conglomerates, in 2019.
The combined entity is the world’s largest commercial yard group and constructs frigates, destroyers, submarines and aircraft carriers for the Chinese navy.
In November, the US designated CSSC as one of the “Communist Chinese military companies” in which US individuals and companies cannot own securities directly or through funds on the ground of national security.
Hu, 63, was widely thought to have played an important role in the merger process as he had led both CSSC and CSIC for much of the past decade.
After serving as senior executives at China North Industries Group Corp and Aviation Industry Corp of China, Hu joined CSSC as vice president and party chief in 2010.
Hu was elected as CSSC chairman in 2012 before being transferred to CSIC for the same position in 2015.
The commission had been investigating Hu since May after similar probes on Sun Bo, CSIC’s former general manager and director.
Sun was released from his duties and eventually convicted of taking bribes and abusing power in 2019. Shanghai No 1 Intermediate People’s Court sentenced him to 12 years in prison, fined him CNY 800,000 ($116,000), and ordered the confiscation of CNY 8.4m in bribes and gifts accepted by him and his wife.
In its statement, the commission accused Hu of “engaging in superstitious activities in response to party audits” and “taking huge amounts of assets and seeking to profit others with his positions illegally”.
He was also accused of playing golf, visiting private clubs and attending banquets that might impact his ability to impartially execute his official duties.
“He used his power for money and sex,” the commission alleged. “His abuse of power causes significant asset losses to state-owned companies.”
