Shanxi Authorities Arrest 293 Officials for Illegal Coal Mine Investments

November 29, 2005

Shanxi provincial authorities closed 2,203 illegal mines and detained 293 officials during a campaign against illegal coal mine investments and official collusion in their operations, according to a November 17 Legal Daily report. An official investigation identified 950 officials who held illegal shares in state-owned coal mines worth 155 million yuan ($19,176,527). Of these, the provincial government forced 871 officials to divest some 62 million yuan ($7,679,730) in mining shares. The Legal Daily report added that some Shanxi officials used the names of friends and family members to conceal their illegal investments.

Shanxi provincial authorities closed 2,203 illegal mines and detained 293 officials during a campaign against illegal coal mine investments and official collusion in their operations, according to a November 17 Legal Daily report. An official investigation identified 950 officials who held illegal shares in state-owned coal mines worth 155 million yuan ($19,176,527). Of these, the provincial government forced 871 officials to divest some 62 million yuan ($7,679,730) in mining shares. The Legal Daily report added that some Shanxi officials used the names of friends and family members to conceal their illegal investments.

The State Council issued a Circular on the Immediate Closure and Rectification of Coal Mines Failing to Meet Safety Standards and Illegally Operating on August 22 that ordered government officials and managers of state-owned enterprises to divest all financial interests in coal mines (other than shares purchased in the public stock exchange) by September 22. The State Council directive followed an August 7 coal mine explosion in Meizhou, Guangdong province, that killed 123 people and led the State Council to investigate allegations that local government corruption contributed to the casualties (see an August 29 Xinhua report on the incident).