Report of 3 Billion Macau Gambling Debt for CCP Official. Are Foreign Media Telling the Truth?
It is not new news that there is a large gambling problem with Chinese
Communist Party (CCP) officials.
It is thought that gambling is one of the main methods that CCP officials used to launder money, and to transfer money from corruption.
It was reported by overseas media that Yang Kun, former Vice President of the Agricultural Bank of China (ABC) owns 3 Billion RMB of gambling debts in Macau.
There are also reports from foreign media about ABC and China’s financial system selling short.
What’s the real story? Let’s listen to the experts.
On April 29, Reuters reported that last year, Macau had 32 Billion USD of income.
Two-thirds of this income comes from casinos and tourism.
Yang Kun, former Vice President of the Agricultural Bank
of China, owns 3 Billion RMB gambling debts in Macau.
The Chinese National Business Daily Website reported on this.
It stated that the 3 Billion RMB gambling debts aren’t owned by Yang Kun.
Overseas media reported that ABC were involved in selling shot.
Xie Tian, a professor of Aiken School of Business,
University of South Carolina, commented.
If a foreign entity is selling short in China’s economy, it will have a great loss.
Xie Tian: “When selling short, they don’t need to go to a casino to transfer and prepare money.
I think if a foreign entity wants to short sell in China,
the reason is because they have seen huge problems within China’s economy, and there’s huge long term risks.
It’s the sign that China’s economy is heading towards collapse. Then they can bet with their own money.”
Inside sources report said the gambling debts that Yang Kun owned are much higher than 3 Billion RMB.
It is actually the total debt, after discount, that given by the casino.
Xie Tian: “CCP officials own such huge gambling debts.
Now there is a report of 3 Billion RMB with Yang Kun. We can imagine that if the Casino asked him to sign a cheque for 3 Billion, he must have spent a
lot more money within his previous win/loss gambling.
It will at least be several Billions, or tens of billions.
In fact, it’s a very worrisome number, which shows that corruption of CCP officials is so widespread.”
However, Chinese media quoted Zong Liang,
Deputy General Manager of the strategic planning department of the Bank of China, and also the Vice Director of the International Finance Institute.
“It’s impossible that the 3 Billion RMB is the working capital.
Also, if he went to Macau with 10 Million RMB, how many times would he need, in order to bring 3 Billion to Macau?
It’s also difficult to find a corporate sponsor because there are few Chinese companies that can give Yang Kun 3 billion RMB.
There’s one possibility, that he borrowed usury, which accumulated the interests and eventually reached 3 Billion.”
The report also questioned that as Vice President of ABC, Yang Kun needed to apply for oversea trip from the central
government. How can he make this trip to Macau?
In addition, Reuters reported that Chinese media had reported many officials laundering money in Macau.
This included Bo Xilai. However, until now, CCP authorities did not make any formal punishments.
Last May, Yang Kun, was taken away by authorities to assist investigations because his name had been reported.
He was banned from leaving China.
Overseas media quoted inside sources who were close to senior leaders.
Yang Kun has a close private relationship with Gu Junshan.
Gu was Deputy Minister of General Logistics Department, of the Chinese People’s Liberation Army.
The people from the banking industry said that the General Logistics Department has plenty of money.
They are just the sort of customer that the banks wanted.
Some observers who are familiar with the army said that Gu Junshan has very luxurious mansion in the Beijing business District.
There are shocking levels of corruption among officials of the General Logistics Department.
In recent years, oversea media have reported a lot about CCP officials laundering public money in casino VIP rooms.
This attracted the attention of the CCP authorities.
The authorities sent investigators to Macau,
to check whether there are officials gambling.
Some casino bosses of said that this isn’t because the CCP authorities want to combat the gambling industry.
It aims to apprehend the officials who gamble with public funds or national assets.
Current affairs commentator Cao An said that most of the Chinese who gamble out of China are CCP officials.
They hold access to public funds, and related resources,
and like overseas gambling because the money they use was not earned by themselves, but by Chinese people.
That’s the reason why the officials use it without any limitation and control.