Telecom scam rocks China, top official held

Last Updated: Wednesday, June 1, 2011 - 19:26

Beijing: China has been hit by a major
telecom scam, as senior executive of the country`s top firm
was arrested and about 60 government and telecom employees,
were under investigation.

Ma Li, deputy general manager of the China Mobile`s
data service division has been arrested by anti-graft
authorities on corruption charges, state run Xinhua news
agency reported.

Initial probe showed that the amount of money involved
in Ma`s case is likely to top 110 million yuan (USD17 million)
but the illegal transaction could exceed 350 million Yuan,
(USD54 million), it quoted officials, as saying.

The probe had led to about 60 other people being
investigated.

Ye Bing, chief executive officer (CEO) of ASPire
Holdings, a corporation held by China Mobile, had been under
investigation since mid-May.

ASPire has been acting as a bridge between China
Mobile and other data service providers (SP).

Anti-graft authorities launched a close investigation
into the three top telecommunications service operator
companies -- China Mobile, China Unicom and China Telecom.

SP companies, closely connected to these three
companies, are also being investigated, it said.

In December 2009, Zhang Chunjiang, then vice chairman
of China Mobile, was removed from his post on allegations of
corruption.

Central Commission for Discipline Inspection of The
Chinese Communist Party later found that he abused his
position by taking bribes.

China`s telecommunications industry is considered to
be one of the most lucrative sectors in the country.
As country`s biggest wireless service provider with
its subscriber over 580 million, China Mobile is ranked as the
second most profitable company in China and the fourth largest
company in business revenue in 2010.

PTI



First Published: Wednesday, June 1, 2011 - 19:26

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