BEIJING - The security chief of the Chinese boom town of Shenzhen allegedly funnelled construction projects for the 2011 World Student Games worth hundreds of millions of dollars through his family, state-run media reported Wednesday.
Jiang Zunyu is suspected of "serious discipline and law violations", a euphemism for corruption, the China Daily newspaper reported, citing provincial investigators.
The case in the southern industrial hub bordering Hong Kong is the latest example of official corruption in China, where President Xi Jinping has pledged to root out graft at all levels.
More than half of the 14 billion yuan (S$2.98 billion) spent on the 2011 Summer Universiade went on new sports facilities, and Jiang was responsible for projects totalling 2 billion yuan, the paper said.
Jiang subcontracted the government contracts through a "bogus company" owned by his wife, who would then receive a commission, it added. His wife and daughter are also under investigation, the paper said.
Corruption is frequently linked to the construction industry in China, where new projects fuelled dazzling economic growth for many years.
In May a National Energy Administration official whose job involved approving the construction of power projects, was found to have kept more than 100 million yuan in cash at his home.
Xi's high-profile anti-graft sweep has taken down some senior officials, although the campaign has been criticised in some quarters for a lack of transparency and for failing to introduce systemic reforms.
Despite the drive the country fell 20 places to 100th in the 2014 Corruption Perceptions Index released Wednesday by anti-graft organisation Transparency International.
"Too many corruption cases take place behind closed doors and the manner in which people are prosecuted needs greater transparency", the group said.