The slow-burning corruption scandal involving the Shanghai pension fund erupted Monday into a national political power struggle after Beijing dismissed Chen Liangyu, the Communist party secretary in Shanghai.
The official Xinhua news agency on Monday confirmed that Mr Chen had been sacked because of his role in the pension scandal.
“Comrade Chen Liangyu has been involved in the misuse of social security funds by the Shanghai Bureau of Labour and Social Security,” Xinhua said.
The agency said Mr Chen was accused of illegally enriching relatives, protecting staff who broke the law and “creating malign political influences”.
Many analysts believe that the dismissal of Mr Chen represents an attack by Hu Jintao, China’s president, against the allies of his predecessor Jiang Zemin, who is also a former mayor of Shanghai.
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