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China Corruption Blotter (October 8, 2012)

Yibin City (Sichuan Province) vice mayor Chen Guangli was handed a suspended death sentence and stripped of all political rights for accepting bribes of more than $3.5 million to manipulate the bidding process on 11 separate government projects. Chen said he began accepting bribes because he felt he had no chance of career advancement after being overlooked for promotions.

According to media reports, the police station in the Fumin area of Shenzhen announced most of their departments would be closed for National Day from September 26 to October 12. The standard length of holiday for Chinese offices during this period is eight days, from September 30 to October 7. The announcement also stated car owners whose vehicles were impounded for traffic offenses would not be able to reclaim their vehicles until October 18. Following complaints, the police station operated overtime prior to closing for the holiday, but opted not to shorten the holiday.

Beijing’s “most corrupt” town mayor Li Bingchun of Liqiao Town received a suspended death sentence for misappropriating $28.2 million and corruption of $6.2 million. Li was charged with forging demolition compensation contracts for personal benefit, embezzling compensation to the government from private companies for projects conducted in the area, and accepting bribes to provide bidding and designs approval convenience to property developers. Liqiao Town Business Department staff Sun Qishi was also sentenced to seven years in prison for assisting in the scheme.

Zhang Jiaxun, chairman of an unnamed state-owned Shanghai property management company, was charged by the Shanghai Municipal People’s Procuratorate for embezzling $892,978, misappropriating $416,513, and accepting bribes of $18,144. Zhang was said to have bought property for personal use with public money.

Ren Jie, former chairman and Party secretary of Jiangxi Province’s state-owned company Phoenix Optical Group Co. Ltd, and Wang Xiyan, former Party secretary and general manager of the same company, were sentenced to 14 years and 14½ years, respectively. Both men were charged with conspiring to embezzle more than $1.6 million from the company, and providing advantages and funding in exchange for bribes.

Liu Guobin, finance division chief of Jingmei Group (formerly Beijing Coal Mining Bureau) Geological Exploration Team, was recently given a suspended death sentence for cooperating with division deputy chief Zhou Hesheng to embezzle more than $1.6 million by setting up more than ten private accounts. The money was reportedly being used to invest in national debts and bonds. Zhou was sentenced to life imprisonment.


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

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