Former chairman of computer chipmaker conglomerate Tsinghua Unigroup, Zhao Weiguo has been accused of corruption by China’s top anti-graft watchdog. This comes amid reports of key players in Beijing’s semiconductor industry being investigated on graft allegations following the government’s billions of dollars worth of investments into projects that later failed or stalled.
The Central Commission for Discipline Inspection, on Monday (March 20) said that the former executive’s case has been handed to prosecutors who will then file charges against him. The regulators have also alleged that Zhao “took the state-owned company he managed as his private fiefdom.”
The former executive is among some of the prominent names who are facing an investigation as the Chinese leadership is seemingly getting frustrated over their failure to make semiconductors which can replace the United States-developed circuitry. Chinese President Xi Jinping’s government reportedly poured some $100 billion into the industry in a bid to reduce reliance on the West.
According to the regulators, Zhao allegedly passed profitable businesses to his relatives and friends while purchasing goods and services from companies managed by his associates at “prices significantly higher than the market”. Together, the acts caused heavy losses to national interests, said the regulators.
This also comes after reports that he has been under investigation since July. At the time, Zhao served as chairman of the company affiliated with the prestigious Tsinghua University, Xi’s alma mater. The issue of semiconductors has become a point of contention between China and the US after the latter has increasingly placed restrictions on the former to contain Beijing’s technological ambitions.
Zhao’s company is said to have become one of China’s leading chipmakers after a series of acquisitions. However, under his leadership, it defaulted on several bond payments some three years ago, reported BBC.
Tsinghua Unigroup also finished restructuring last July which placed it under the control of another group of companies led by state-backed venture capital firms. It was also around that time that Zhao stepped down as the chairman.
Meanwhile, another area of scrutiny for Beijing’s authorities has reportedly been the National Integrated Circuit Industry Investment Fund or Big Fund where the anti-graft agency had previously announced investigations into executives who helped manage the company’s fund, reported Bloomberg.
(With inputs from agencies)
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