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China Corruption Blotter (December 28, 2012)

According to Chinese reports, two unnamed hospitals in Shangrao City (Jiangxi Province) were recently fined by the authorities for paying kickbacks to medical personnel in exchange for patient referrals for CT scans and other tests.

Xinyu City (Jiangxi Province) National People’s Congress secretary general Liu Yan was recently sentenced to 10 years in prison for corruption. The 48-year-old official allegedly spent $31,961 in public funds on expensive tea leaves as well as beauty and cosmetics products.

Three officials of state-owned Chebei Economic Development Co. Ltd. in Guangzhou were recently charged for corruption involving $2.45 million. The company’s Party secretary Su Lijiang and deputy secretaries Ma Chengjia and Wang Jinyao allegedly granted extra land acquisition compensation to individuals who paid bribes.

Wang Jianshe, Huangshan City (Anhui Province) Party standing committee member and Political and Legislative Affairs Committee secretary, was reportedly placed under investigation by the province’s Committee for Discipline Inspection. Wang is thought to have accepted bribes from individuals to provide conveniences tied to housing demolition, fire safety inspection, personnel appointments, car plate licensing, and more.

Xiao County (Anhui Province) Party secretary Wu Baoliang was suspended and placed under investigation for serious disciplinary violations. In exchange for bribes, Wu allegedly assisted companies in credit financing and mortgage guarantees, helped developers gain contracts, and gave advantages to developers in demolition, relocation, and building pre-sale procedures.

Shanxi Coking Coal Group chairman and Party secretary Bai Peizhong was determined to be in possession of illicit money after police recovered more than $1.6 million from thieves who robbed Bai’s house. He was removed from his position as chairman and Party secretary of the company. Investigators later found only $135,000 of the money was illicit. Bai was suspended from Party membership for one year.

Qu Jianguo, former president of the Zhuhai City branch of China Guangfa Bank, was given a suspended death sentence for taking millions from the bank. Qu used various techniques to commandeer the cash, including diverting the bank’s marketing budget and applying for reimbursement for personal expenses such as his MBA course tuition fees and country club memberships.


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

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