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China Corruption Blotter (November 1, 2012)

Nanchang Hangkong University Party secretary Wang Guoyan was given “double expulsion” (from the Party and from administrative posts) by the Jiangxi Province Commission for Discipline Inspection for serious disciplinary violations, and is now awaiting judiciary proceedings. According to reports, Wang was suspected of accumulating bribes in enormous amounts, and of involvement in immoral behaviors.

Tongxiang City (Zhejiang Province) Notary Office head Shen Jilong was suspended from duty following an online expose. Shen was said to be earning more than $127,528 annually, and reportedly spent more than $15,941 on crab banquets, disguising his restaurant bills as expenditures related to “investigative expeditions.”

Jinhua City (Zhejiang Province) vice mayor Zhu Fulin was sacked and is now awaiting judiciary proceedings against him for taking bribes from several property developers. According to media reports, Zhu, his wife, and several of his subordinates were detained by the Zhejiang Commission for Discipline Inspection in August.

Former Jingmen City (Hubei Province) CPPCC chairman Li Zongxuan was charged in court for corruption of $247,086. Li was said to have accepted bribes from various parties and to have solicited bribes on behalf of other colleagues in exchange for awarding projects and advantages in bidding. Li admitted in court he was wrong to forget his role as an official, but argued his giving and accepting of gifts mostly came out of “fraternal loyalty.”

Huafeng Group general manager Shi Yongyi, former CCTV executive who pioneered the station’s weather report program, was sentenced to 11 years in prison for embezzling company funds. Shi was charged with spending more than $159,000 of company cash at various health clubs, gyms, and beauty salons. Shi insisted these expenses were necessary for her social engagements on behalf of the company.

Zhejiang Qianhong village committee head Hong Yongsen was recently sentenced to 16 years in prison for corruption, embezzlement, and misappropriation of funds. Hong was said to have embezzled land acquisition compensation by underpaying villagers, and misappropriated money from a street management fund using a villager’s IOU. According to reports, the total amount of his illicit gains exceeded $159,410.


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

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