Liu Genshan, “Shanghai’s King of the Road,” has been detained on suspicion of bank loan fraud involving 4.6 billion yuan ($671 million). The highway and property development tycoon, one of China’s richest men, was held for questioning by officials a week ago, the Shanghai Daily reports. According to AFP, police are investigating Liu’s transactions in connection with the Yongjin highway, which opened in 2005. Liu was first accused earlier that year of moving 3 billion yuan in bank loans for highway projects overseas through illegal private banks, in a report by Hong Kong’s Independent Commission Against Corruption. According to China Daily, an “unnamed source close to the police bureau” confirmed that Liu is still under investigation.
Liu was named one of China’s 15 wealthiest men by Forbes magazine in 2003, reports AFP. Since 1999, Liu has invested in 7 city-level highways: Huqingping, Hujialiu, Tongsan, Nanhuan, Ningbo Ringroad, Beilungang and Yongjin. His scandal is the latest in a series of takedowns of Chinese top officials and business leaders, including Communist Party chief Chen Liangyu in April.
Photo by NosniboR80.