China’s Ministry of Railways removed Zhang Shuguang as deputy chief engineer and is investigating him for alleged “severe violation of discipline,” Xinhua News Agency said, in the second probe of an official from the ministry in a week.
Former Chinese Railway Minister Liu Zhijun was charged with corruption and abuse of power as the Communist Party roots out graft that blossomed during the debt- fueled roll out of the world’s biggest high-speed rail network.
China’s state-owned railroad is increasing debt sales by 50 percent, driving yield premiums on its bonds to the highest levels in more than six months, as the world’s biggest high-speed network is rolled out.
China’s former railway minister was given a suspended death sentence for abuse of power and taking bribes, making him the highest-raking official convicted since Xi Jinping took over the Communist Party last year.
Ousted Politburo member Bo Xilai remained defiant as his corruption trial ended with prosecutors calling for a severe punishment, in a case the Communist Party called proof of its determination to target high-level graft.
China punished 54 officials and ordered the railway ministry to improve management of its high- speed rail system after a government investigation found a fatal train crash was caused by mismanagement and design flaws.