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China Corruption Blotter (December 6, 2013)

Liu Bokun, former chairman of Xinjiang Shenhua Mining Co. Ltd., was sentenced to 20 years in prison for embezzling $1.1 million, misappropriating $4.5 million in public funds and accepting bribes worth $249,278. Liu gave out personal loans using the misappropriated public funds and handed out illegal mining permits to private investors in exchange for bribes. He pled guilty to the charges but has appealed his conviction to higher court.

Li Zhu, former director of Beijing Urban Lake & River Management Division, was put on trial for embezzlement and bribery involving the 2010 Beijing subway line 9 water leak incident that caused one death. Li allegedly awarded construction projects in violation of tender rules and inflated building costs to obtain illicit gains totaling $2 million.

Feng Weilin, the former head of Hunan Provincial Highway Administration is on trial for taking bribes worth over $6.6 million. Feng’s charges include manipulating tenders for highway related projects and for granting government procurement contracts in exchange for bribes. His sister Feng Xia and wife Yi Xingling are being tried alongside him.

Huang Shunfeng, the former deputy chairman of Haiwei Liquor Trading Market Co Ltd in Shantou Free Trade Zone is on trial for paying $221,623 in bribes to two government officials. He had made a $195,600 payment to former Huang Zhiguang, deputy chairman of Shenzhen’s political consultative conference, in order to secure government projects and to gain a foothold in the liquor market. Huang Shunfeng also acted as a middleman to funnel bribes to Huang Zhiguang on behalf of government officials seeking promotion.

The Guangdong Higher People’s Court has rejected the appeal of Zhu Siyi, former National People’s Congress (NPC) deputy and president of Shaoguan Yida Fuel Development Co Ltd. Zhu had been convicted and sentenced to 16 years in prison for offering bribes worth $2.6 million to 31 government officials in exchange for fuel supply contracts and membership to the NPC.

Hou Shuguang, former director of the environment bureau in the Liuhe district of Jiangsu province is on trial after he confessed to accepting bribes worth $49,260 from private investors and government officials in return for awarding them construction projects, business licenses and promotions. Prosecutors have suggested a lenient sentence of six to ten years in prison given his confession.


Hui Zhi is a Senior China Analyst with the China Compliance Digest

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