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Head of Shanghai's F1 racing circuit fired over alleged misuse of funds

SHANGHAI, China (AP) _ The head of Shanghai's multimillion dollar Formula One auto racing track has been fired as part of an investigation into the alleged misuse of city pension funds, Chinese state media reported Monday.

Yu Zhifei, a former city government official and general manager of the Shanghai International Circuit, was also expelled from the Communist Party and handed over for prosecution, the Shanghai Daily and other newspapers said.

Yu had been a key force behind Shanghai's racing circuit, designed by famed German architect Hermann Tilke and located on former swamp land about one hour west of the city.

The track has hosted three editions of the Grand Prix of China in auto racing's highest profile series, along with the motorcycle MotoGP and other top races.

While some have questioned the expense, the circuit has become a prominent part of Shanghai's effort to market itself as an Asian business centre.

Yu is thought to be close friends with the city's former top leader, Chen Liangyu, who was sacked last year over allegations of corruption and other abuses _ the highest-level ousting of an official in a decade.

A former district head, Chen Chaoxian, and the former director of the city's state-owned assets supervision bureau, Ling Baoheng, were also fired, expelled and referred to prosecutors, the papers reported.

The reports gave few details of the charges, but said Yu had allegedly taken public money to buy a house, amid other abuses. Chen and Ling were found to have taken bribes in return for favours, the reports said.

Staff at the city government's spokesman's office confirmed the reports but said they had no additional information.

More than a dozen people are believed to have been investigated as part of the probe into misuse of the city pension fund, about 3.2 billion yuan (C$455 million) of which was improperly invested in real estate and road toll projects.

A highway connecting the city to the racing track has been mentioned as one of those tainted projects, although there is no indication the track was built with diverted pension funds.

Shanghai's mayor claimed in January to have retrieved all the misused money, although allegations of other abuses continue to crop up.

Reports also said Yin Guoyuan, the former vice director of the land and housing management bureau, had been transferred to prosecutors amid a probe into bribe taking in return for real estate approvals.


© The Canadian Press, 2007

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End: Head of Shanghai's F1 racing circuit fired over alleged misuse of funds
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