by Our Foreign Desk

THE two owners of the company at the heart of last week’s disastrous Tianjin warehouse explosion secretly held their shares through friends and relatives to hide their state connections, Chinese news agency Xinhua revealed yesterday.

Xinhua interviewed executives of Tianjin Rui Hai International Logistics Co. Ltd, including company head Yu Xuewei, deputy head Dong Shexuan, general manager Zhi Feng and vice manager Cao Haijun — all of whom are in police custody following the blast that killed 114 people.

Mr Dong, son of former Tianjin Port police chief Dong Peijun who died last year, secretly held a 45 per cent stake in the company through a friend.

“I had my schoolmate hold shares for me because of my father. If the news of me investing in a business leaked, it could have brought bad influence,” Mr Dong said.

He admitted using his connections in the police force and fire brigade to obtain permits for the firm’s warehouse.

Mr Yu, a former executive at a state-run oil company, admitted that he owned his 55 per cent stake through cousin Li Liang.

Chinese law rules that dangerous warehouses must be located at least 1,000 metres from major transport hubs and public buildings, but the warehouse was only 560m away from the Vanke residential complex and 630m from a railway station.

“The first appraisal company said our warehouses were too close. We found another company who got us the documents we needed,” Mr Dong said.