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China Corruption Blotter (January 11, 2013)

Guo Wen, a village official from Beijing Fengtai District, was sentenced to nine years for dereliction of duty and embezzling $607,620 in demolition compensation in 2007 from the Fengtai government while he served as village Party branch secretary.

Former Danjiangkou City (Hubei Province) vice mayor Hui Lingbo got eight years for dereliction of duty and taking bribes of $240,828. During a city-wide drive to draw investment, Hui allegedly gave preferential treatment to bribe-payers. He was also found guilty of inflating his own track record of attracting investment by recirculating funds in and out of the city through a Hong Kong company.

Jingdong Mall, known as China’s largest B2C online retailer, recently announced one of its purchasing managers identified as Zhou had been arrested for buying overpriced items from suppliers and illegally profiting from the deals. Zhou allegedly netted several million yuan through the illicit deals.

According to online reports, Yiliang County (Yunnan Province) Party secretary Cao Fuzhong and other county leaders bought more than ten Toyota Troopers (each worth more than $95,922) using licenses earmarked for local police. Cao was also accused of spending more than $3.2 million to organize a basketball competition, holding drinking parties in his office with pretty girls, and gambling heavily with coal mine owners. Cao declined to comment when contacted by the media. Disciplinary officials are currently investigating.

Yang Hongwei, former Yunnan Chuxiong Yi Autonomous Prefecture governor, and his wife were charged with corruption involving more than $1.6 million. Prosecutors charged the wife would solicit and collect bribes from businessmen seeking favors from Yang.

Duan Zhenhao, former director of the Key Laboratory of the Earth’s Deep Interior under the Chinese Academy of Sciences, was recently sentenced to 13 years. In 2011, Duan’s wife alleged he used research funds to support several mistresses and an illegitimate daughter. Duan claimed the daughter was the product of an innocent sperm donation. Duan was also found guilty of claiming reimbursements from the academy with forged receipts.


Chua Guan Cheong is a senior journalist with ethiXbase and the China Compliance Digest.

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