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China Corruption Blotter (March 22, 2013)

Liang Daoxing, former vice mayor of Shenzhen, was expelled from the Communist Party for corruption. The investigation into Liang’s case was launched in late 2012. Liang was in charge of organizing the 2011 World University Games. Several other officials have reportedly been placed under investigation in connection with the Games.

Shan Shanghua and Zhang Siyou, former president and vice president of China Metallurgical Industry Planning and Research Institute, respectively, have been charged with embezzling state-owned assets. Between January 2005 and October 2008, Shan and Zhang reportedly distributed more than $641,080 in misappropriated public funds as “bonuses” to employees. Shan personally took $266,048, and Zhang $78,532, according to prosecutors.

Liu Shi-tuan, former Dongguan (Guangdong Province) Municipal Party Committee Deputy Secretary-General and Party secretary of Shijie Township, has been expelled from the Party and dismissed from office. Liu is accused of causing the state to lose “a large amount of assets.”

According to an online whistleblower, the Party secretary of Xifeng County (Liaoning Province), surnamed Yan, purchased a Toyota Prado car worth $240,405 with money earmarked for water projects in the impoverished county. The vehicle was allegedly fitted with fake military license plates. Reached for comment, a Xifeng official denied the allegations, saying the car was borrowed from a private citizen to help the Party secretary travel in mountainous areas, and has since been returned to its owner. The official also claimed the owner installed the counterfeit plates to avoid having to pay expensive tolls.

Kong Fangjun, former Deputy Director of Vehicle Management Agency of Traffic Police Branch in Guangzhou (Guangdong Province), stood trial for corruption and dereliction of duty. Between 2006 and 2012, Kong allegedly slackened supervision on vehicle examination in exchange for bribes, including $12,822 in cash and luxury gifts worth $54,492.

Chen Xiaozhong, former director of state-owned Lanyang Farm in Hainan Province, recently received seven years. Between October 2010 and October 2011, Chen helped project contractors win business and helped them with project approval and land transfers in exchange for payments totaling $158,667. The court reportedly showed leniency to Chen after he volunteered to confess his crime and handed over $96,180.

Yang Kun, the former Deputy President of Agriculture Bank of China who was detained in May 2012, has been transferred to procuratorates for further investigation. Yang was accused of accepting more than $1.6 million in bribes from developer Blue Harbor Properties to grant $481 million in loans for the construction of a Beijing shopping center.


Hui Zhi is a Senior China Analyst with ethiXbase and the China Compliance Digest.

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