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China Corruption Blotter (October 24, 2012)

Song Wendai, former chairman and CEO of Inner Mongolia Qiankun Gold & Silver Refining Co. Ltd, was sentenced to death for corruption and embezzlement. Song was charged for abusing his position to fraudulently obtain more than $10.3 million in public property–including 58.9 kg of gold (worth $3 million) and 1.4 tons of silver–and embezzling $3.3 million.

Hainan wunderkind official Xiao Minghui, former deputy director of Yangpu Economic Development Zone Construction Land and Planning Bureau, was sentenced to life imprisonment for accepting bribes of $2.6 million. A 32-year-old native of Hunan Province with a master’s degree from Beijing’s prestigious Tsinghua University, Xiao was said to have solicited bribes from a construction company based in Zhuhai (Guangdong Province) in exchange for a relocation housing project worth $125 million.

Guo Wenyin, Party secretary of Guai Village under Beijing Fengtai District was charged for embezzling $605,340 intended for relocation compensation. In 2007, Guo allegedly obtained the money by forging several relocation compensation agreements.

Wang Guohua, general manager and Party secretary of Wuhan (Hubei Province) Hongshan Hotel, a former state-owned hotel, was sentenced to five years in prison for accepting bribes during the privatization of the hotel in 2010. Wuhan prosecutors began investigating him after receiving information from an anonymous tipster. It was found that Guo and four other senior executives of the hotel took bribes from developers and suppliers seeking hotel improvement contracts.

The Hainan First Intermediate People’s Court recently rejected an appeal by former Wenchang City Agriculture Development Office chief Fu Li. Fu had previously been sentenced to ten years and stripped of political rights for one year after being found guilty of 46 counts of corruption involving a total of $116,232. Between 2008 and 2010, Fu reportedly took bribes from several parties in exchange for advantages during project bidding, project supervision, inspections and approvals, and subsidy applications.

Former Hohhot (Inner Mongolia Autonomous Region) deputy secretary-general Zhang Zhixin was given a life sentence for corruption and dereliction of duty. Prosecutors said between 2000 and 2005, Zhang abused his power and cooperated with third parties to embezzle $10.5 million from the government, accepted bribes totaling more than $156,251, and cost the region $554,851 with his irresponsible management of rental affairs for the government’s training center.


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

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