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Top securities exec resigns amid doubts of 'naked official'

(chinadaily.com.cn) Updated: 2014-06-11 16:48

A resignation speech on Monday by Chen Geng, president of Guotai Junan Securities Co Ltd, a leading State-owned enterprise in the securities business, circulated widely.

Attention was drawn to the speech because the company is at a critical moment applying for an IPO, while some doubt Chen's leaving has to do with him being a "naked official", Beijing Youth Daily reported on Wednesday.

"Naked officials" are those who have sent their spouses and children overseas to live or study.

Top securities exec resigns amid doubts of 'naked official'

Special: Crackdown on?graft? 

According to the newly-revised Regulations on the Work of Selecting and Appointing Leading Party and Government Cadres by the Party's Central Committee in January, those officials whose spouses have emigrated, or those having no spouses but children who have emigrated, will not be considered for any promotions.

Furthermore, all cadres should report annually by Jan 31 on personal property and on the situation of their spouses and children.

The Guangdong provincial government said it has adjusted the posts of 866 "naked officials" amid the ongoing anti-graft campaign.

It's the first time a provincial government has adjusted the posts of so many "naked officials".

Chen did report his situation, saying his wife and three children hold overseas passports. It's common for employees of the financial circle to send their family members abroad, the newspaper said.

If the suspicion turns out true, Chen will be the first top official removed from a leading post in Chinese securities business for that very reason.

The company's website posted an announcement on Monday, saying upon Chen's personal wish, he is no longer president. But he will remain as vice chairman of the board.

The announcement didn't mention anything about "naked officials", and stated that the decision was made by the Organization Department of the Shanghai Municipal Committee of the Communist Party of China.

Chen holds a PhD degree in economics and is a certified public accountant. He has been in the business for 24 years and led many innovations. He is the major force pushing for Guotai Junan's applying for an IPO. "At the critical moment of IPO, Chen's resignation isn't that simple," Beijing Youth Daily said, quoting an insider.

Chen handed in his resignation on June 3, saying his reasons are all "personal". It's said that his wife has returned, but the children haven't. The newspaper quoted people as saying he "made a great sacrifice for his family members this time".

In his resignation speech at the company's headquarters in Shanghai, Chen mentioned family members several times and words like "I respect their choices" and "I would like to spend more time with them".

He also stated that during his 10 years as the company's president, he lived up to his pledge for discipline and honesty.

 

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