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China Corruption Blotter (September 19, 2012)

Several Guangzhou City Yinhe Martyr Cemetery managers were recently given prison sentences for corruption involving the awarding of renovation projects within the cemetery. Former director of the cemetery Ye Jianwen was sentenced to eight years for taking $177,681, and cemetery Party secretary and director Yao Shangang was sentenced to five years and three months for taking $33,020.

It was reported that Dongguan Environmental Protection Bureau director Yuan Shaodong was recently placed under investigation by the authorities for serious disciplinary violations. Yuan was reportedly last seen attending a public event on August 29 inspecting environmental works near the river delta.

Former Guangdong Province Yangchun City State Taxation Bureau director Ou Kaiye and branch director Zhong Zhijin were sentenced to 17 years and four years in prison, respectively. Ou also had $15,745 of his personal assets confiscated. The prosecutors charged that Ou and Zhong conspired to accept bribes from triad chief Lin Guoqin (already sentenced) in exchange for helping Lin evade taxes. Ou was said to have taken more than $47,235 from Lin; Zhong, about $7,558.

The Foshan City Commission for Discipline Inspection announced district mayor assistant Zeng Futian had been sentenced to five years in prison for corruption. Zeng allegedly cooperated with officials from Gaoming Municipal government and managers of Gaoming City Suiming Trading Co. to embezzle funds of more than $619,158. Some of the money came from loan repayments by Foshan Agriculture Development Co. to Suiming Trading. Zeng also forged loan documents in order to withdraw Suiming Trading’s money.

A 59-year-old village Communist Party branch secretary identified only as Lin was sentenced to four years in prison following an expose by the public for embezzling $58,256 of relocation compensation. Lin was found to have collaborated with those affected by relocation projects and taking a cut of their compensation for his role in facilitating payments.

Former Southern Industrial Asset Management Co. Ltd general manager Wang Tingwei, who was sentenced to life imprisonment for embezzling $1.1 million through signing of false contracts, has appealed his sentence to the Beijing High People’s Court. According to Wang, the seven million was mainly used for expense reimbursement for his former bosses in the company, and for employee bonuses. Wang’s lawyer argued that Wang’s mistake was creating a private stash against regulations to evade tax, and should not be treated as corruption. No verdict has yet been given for his appeal.


Chua Guan Cheong is a senior journalist with the FCPA Blog membership area  and the China Compliance Digest.

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