BEIJING, China (CNN) -- China has arrested the former head of the country's credit insurer on charges of corruption after a months-long investigation, state media reported.
Tang Ruoxin, former president of China Export and Credit Insurance Corp., lost his job and Communist Party membership late last year for allegedly taking bribes, Xinhua news agency reported Thursday.
Tang was dismissed in April and arrested a few months later in August on suspicion of malfeasance. The corruption charges follow months of investigation by the China Insurance Regulatory Commission (CIRC) -- a government supervisory body. Tang remains under investigation, according to the CIRC.
The commission found that huge government assets were lost when Tang abused his power to benefit business connections.
Tang is accused of providing an unworthy credit guarantee for the Shanghai Hongsheng (Norcent) Technology Co. so it could get a $245 million bank loan, which the company later defaulted on. He is also accused of taking kickbacks in the deal.
The China Export and Credit Insurance Corp., founded in 2001, is China's only policy-oriented credit insurance company -- created after China joined the World Trade Organization. It supports the country's commodity, technology and service exports through export credit insurance. Tang had served as its president and Communist Party Secretary since its inception in 2001.
At an anti-corruption meeting held on Thursday, commission chairman Wu Dingfu said the fight against corruption should be strengthened to head off risks in the insurance sector.
Tang is the latest of many Communist Party and government officials accused of corruption. President Hu Jintao and Communist Party leaders have vowed to prosecute violators.
But they admit that corruption within the party remains largely unchecked despite several high-level arrests, including Shanghai party boss, Chen Liangyu.
Chen was toppled in a scandal linked to the misuse of hundreds of millions of dollars in city pension funds, some of which were illicitly invested in dubious real estate and other projects. He was the highest-level party official to be ousted in a decade.
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