Search

Editors

Richard L. Cassin Publisher and Editor

Julie DiMauro Executive Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Elizabeth K. Spahn Contributing Editor

Eric Carlson Contributing Editor

Michael Kuria Contributing Editor

Thomas Fox Contributing Editor

Philip Fitzgerald Contributing Editor

Marc Alain Bohn Contributing Editor

Michael Scher Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

Russell A. Stamets Contributing Editor

Connect

Subscribe to receive the free FCPA Blog Daily

Close
« 2012: The year in declinations | Main | New book tells the story of global corruption and enforcement »
Thursday
Dec272012

China survey: bribes eat big chunk of developers’ profits

Results of a recent survey strongly suggest China’s real-estate sector is straining under a massive burden of bribery.
 
One hundred and thirty-four property developers from three provincial capitals -- Wuhan (Hubei Province), Guangzhou (Guangdong Province), and Nanjing (Jiangsu Province) -- participated in the survey, which was run by Zhang Hongxia, an assistant professor at Hubei University of Education.
 
Zhang said the developers admitted at least 20 percent of their potential profits goes to influencing officials with bribes, receptions, and tours.
 
Eighty percent of respondents said they knew of developers who lavished officials with gifts worth more than $320 during festivals, or when the developers needed a favor.
 
The survey results also sketch how corruption balloons as it ascends the government food chain. The developers said bribes to section-head level officials range from $800 to $1,600 per official, while bribes to department-head level officials fall between $3,200 to $4,800 per head. Respondents said approaching a bureau chief or director-level official with anything less than $8,000 would be “embarrassing.”
 
Zhang concluded that the scale of corruption would only expand if the government were to ramp up regulation of land development.

Source: Southern Metropolis Daily (南方都市报)

_____________

Benjamin Kessler is a contributing editor of the FCPA Blog and managing editor of ethiXbase. A version of this post previously appeared in the China Compliance Digest.

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.