Chinese Property Insurer Bugged Watchdog's Inspection Team, Report Says
Yicai Global
/SOURCE : Yicai
Chinese Property Insurer Bugged Watchdog's Inspection Team, Report Says

(Yicai Global) Jan. 13 -- Yingda Taihe Property Insurance Co., a national joint-stock property insurance company, wiretapped the venue it offered inspectors from the China Insurance Regulatory Commission's Shandong branch in Weifang.

The regulator's local bureau said its examination team was conducting an on-site inspection of Yingda Taihe's Weifang branch when examiners found two recording devices set up to eavesdrop on their conversations, the National Business Daily reported.

Deputy General Manager Lu Wentao, Interim General Office Head Han Tao, Deputy Yang Changhao, and Finance Department Assistant Cui Zhao intended to listen in on talks to impede the investigation, a serious legal violation, the CIRC said, according to the report. During its visit, the CIRC team said it found the company hid funds in violation of regulations, the report said.

Speculation is that the wiretapping devices included a recording pen and an iPhone 6S. The bugs were discovered when the tape holding the mobile phone failed. Concerned parties have not verified these details.

The CIRC has not yet specified punishment, but insiders suspect Yingda Taihe is likely to receive a fine of about CNY500,000 (USD72,470) and some of its businesses and business licenses may be suspended.

Yingda Taihe Property Insurance is CIRC approved and part of the State Grid Yingda Group. It started business in October 2008 with registered capital of CNY3.1 billion (USD449 million).

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