The son of a former Chinese police chief was one of two secret owners of a chemical warehouse that exploded in Tianjin, killing at least 114 people. He used his connections to get a license despite the warehouse violating safety standards.

Mr. Yang Dongliang - head of China's National Administration of Work Safety has been investigated for corruption after the Tianjin explosion (Photo: SCMP)

The information was published by Xinhua News Agency on August 19. Accordingly, the chemical warehouse that exploded in Tianjin was jointly owned by a former head of a state-owned chemical company and the son of a former police chief of Tianjin Port. Both used their connections to obtain a license to build the chemical warehouse.

The article reinforced what the Chinese people have long understood: private company leaders with extensive government connections often use their personal connections to break the law, sometimes with serious consequences.

The article sheds light on the shady ownership relationship at Ruihai International Logistics, the company that owns the warehouse, which has sparked widespread speculation about high-level connections and a possible cover-up following the August 12 explosion. Sixty-five people remain missing and 674 are hospitalized.

The two anonymous owners were identified as Yu Xuewei, former head of Sinochem Group in Tianjin, and Dong Shexuan, son of the late Tianjin Port Police Chief. They were two of 10 Ruihai company officials detained for investigation after the explosion.

Dong confessed that Yu brought him into the company in 2012 because of his connections, and Dong was able to easily obtain a fire safety certificate for the chemical business.

“I brought all the materials to prepare for the upgrade plan, and the fire prevention and fighting permit was issued quickly,” Dong said.

Thanks to this fire prevention and fighting license, Ruihai company was able to quickly obtain a construction permit from the local government, even though according to regulations, this warehouse violated the standard of a minimum distance of 1,000m from roads and residential areas.

“We have based it on the fire safety certificate,” Zhu Liming, an official with the local planning authority, told Xinhua.

Dong said Ruihai also overcame another seemingly impossible obstacle. A safety inspection company told Ruihai it could not issue a qualification report because the warehouse was located near a residential area.

“But Yu Xuewei told me not to worry, to leave it to him. And he changed to another inspection company and got a qualified report,” Dong said.

Neither Yu nor Dong are listed as owners of the warehouse. Instead, they let their wives and high school classmates hold shares in Ruihai, respectively.

Investigation of the leadership of the National Occupational Safety Agency

So far, in addition to Ruihai's leadership, Chinese authorities have also detained the head of the National Administration of Work Safety.

In a statement published on September 18, the Central Commission for Discipline Inspection of the Communist Party of China affirmed that Mr. Yang Dongliang was suspected of "violating party discipline and the law" - a term referring to corruption.

This information, according to the South China Morning Post, shocked many people, because Mr. Yang was the person who directed the rescue efforts in Tianjin, and was once the city's vice mayor. On Monday, Mr. Yang was still attending a meeting of the rescue task force established by the State Council.

According to Chinese media, Ruihai's temporary license to handle hazardous chemicals expired in October 2014, and it was not until this past June that the company applied for a new license.

However, there are also reports that the investigation into Mr. Yang, who served as vice mayor of Tianjin for 12 years, is likely unrelated to the recent explosion. Mr. Yang is suspected of causing losses of state assets in Tianjin during his time as head of the city's state-owned assets management agency.

The news comes amid growing concern among Tianjin residents about toxic chemicals at the site of the blast. Some reporters and residents reported chemical burns to their skin as rain fell on the city yesterday. Experts have warned people to avoid contact with rainwater, fearing it may contain dangerous chemicals.

According to Dan Tri