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China Corruption Blotter (May 29, 2014)

Huang Xiaohu, former party secretary and chairman of China’s Anhui Military Industry Group, has been expelled from the party for corruption. Huang was accused of accepting $328,857 in bribes, embezzling $1.5 million in public funds, offering bribes of more than $2 million to government officials. He also had extramarital affairs with several women.

Discipline authorities are investigating Guo Aidong, vice-chairman of Yuxian county committee of the People’s Political Consultancy Conference in Shanxi province, following online accusations that Guo watched basketball games in expensive VIP seats that cost $4,580. Whistleblowers questioned Guo over the source of the expensive ticket. Guo claimed that he got the ticket from a businessman friend and only watched three games, for which he had paid the friend $575.

Guo Youming, former vice governor of Hubei Province, has been expelled from the party for abusing his position to seek benefits for others and accepting a huge amount of bribes. Guo was reportedly involved in illegal land allocation and problematic real estate projects in Yichang city. He was also linked to financial irregularities discovered in private company Yichang Three Gorges Quantong Coated and Galvanized Plate Co Ltd.

Dai Yuqing, former head of Guangzhou Daily Press Group, denied bribery charges in his trial, alleging that he was forced to make a confession during investigations by discipline authorities and prosecutors. Dai is charged with abuse of power and taking bribes worth $400,750. Dai claimed that his charge was retaliation as he previously rejected a request by local disciplinary commission head Wang Xiaoling of granting a construction project to Wang’s relatives.

Hangzhou Intermediate People’s Court has rejected an appeal by Fan Yaping, a drug sales representative who was sentenced to ten years in prison for offering bribes and gifts worth $211,088 to doctors and pharmacists in return for drug prescriptions. Fan pleaded not guilty to the bribery charges and appealed her conviction.

Chen Haiju, former deputy general manager at China Eastern Airlines, was tried for taking $810,548 in bribes to seek business deals for others, including contracts for electricity power project and waste disposal project. Chen pleaded not guilty, saying he gained the money through gambling and he was forced to confess during investigation.


Hui Zhi is the Senior Manager for Content with the China Compliance Digest.

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