KI Daily Brief – February 15, 2016

Ukraine: Battle Brews over Embezzlement Case Against Yanukovych Ally

Nearly three weeks after a Kyiv Court ordered prosecutors to drop an embezzlement case against ex-lawmaker Yuriy Ivanyushchenko, prosecutors are vowing to press ahead with it. Ivanyushchenko, an ally of disgraced former president Viktor Yanukovych, was accused of illegal enrichment by running corrupt schemes at the customs agency and of embezzling funds received by Ukraine from the sale of Japanese greenhouse gas emissions quotas under the Kyoto Protocol. Ivanyushchenko reportedly fled to Moscow in December 2014. Later he was placed on Interpol’s wanted list, although as of Jan. 22, 2016 he no longer appears on the list. He is still wanted in Ukraine.

Ukrainian Prosecutor Quits Over Corruption as Government Teeters

A senior Ukrainian prosecutor resigned on Monday, calling the office he worked for a “hotbed of corruption”, another blow to government attempts to clean up the judiciary, a crucial step to unlock more Western aid. The resignation, the second exit of a Western-backed reformer in under a fortnight, came a day before a possible no confidence vote in parliament that could topple Prime Minister Arseny Yatseniuk and lead to a snap election.

China’s Military Sets Up Anti-Corruption Hotline

President Xi Jinping has led a sweeping anti-corruption campaign targeting a swath of high-ranking officials in industry, government, and the military. The People’s Liberation Army (PLA) is reeling from the crackdown and has seen dozens of officers investigated, including two former vice chairmen of the Central Military Commission, Guo Boxiong and Xu Caihou. The telephone hotline, as well as a dedicated mailbox, will “fully utilize supervision by the masses” and complaints will be addressed in a “timely and earnest” fashion, a notice posted to the ministry’s website said. The hotline was set up by the military’s graft-fighting discipline inspection committee under the powerful Central Military Commission, which controls the armed forces.

Chinese Dye Maker Defaults After Chairman Assisted Probe
Bloomberg Business

At least seven Chinese companies defaulted on domestic notes last year amid the country’s weakest economic growth in a quarter century. The anti-corruption investigations are adding to risks. Kaisa Group Holdings Ltd. last year became the first Chinese developer to default on dollar notes, amid a probe. Future Land Development Holdings Ltd. said last month that its Chairman Wang Zhenhua was being investigated by Changzhou city authorities. Its 10.25 percent 2019 dollar notes plunged by a record the next trading day. “There is higher risk facing private-sector Chinese companies this year due to continued anti-corruption probes and the fact that banks are turning more cautious towards lending to them,” said Ji Weijie, credit analyst at China Securities Co. in Beijing.

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