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China Corruption Blotter (October 4, 2013)

Zhang Xinhua, the manger of Guangzhou-based Baiyun Nonggongshang United Co Ltd, is under investigation for accepting nearly $16 million in bribes and embezzling state assets worth $39 million. He allegedly sold state land and property to private investors in exchange for the bribes. Zhang also established Guangzhou Guangtian Property Co., Ltd and Guangzhou New Yu Tian Property Co., Ltd to steal state assets from Baiyun through fake deals.

Guangzhou’s Intermediate People’s Court has upheld the 6-year jail term of Liang Zhenke, the former head of the Funeral Service Center under Guangzhou’s Civil Affairs Bureau. He had been convicted of bribery last year. Liang allegedly took bribes worth $22,647 from furniture and stone suppliers – Panyu District Shawan Liufu Furniture Factory and Jiedong County Xianghui Stone Co., Ltd -- to grant them procurement contracts. Liang also paid $86,601 to the former head of Guangzhou Civil Affairs Bureau, Li Zhizhen, to get a job promotion.

Ye Qian, former deputy head of Shenzhen Municipality’s Bureau of Public Works, has been charged with taking and paying bribes. Ye allegedly accepted bribes of $378,849 from private contractors in exchange for project allocations. He is also charged with offering $87,703 in bribes to several government officials including Liang Daoxing, the detained former deputy mayor of Shenzhen.

Beijing Boyou Investment Management Company’s former legal representative, Ding Yuxin, formerly known also as Ding Shumiao, pleaded guilty to bribery and owning an illegal business operation. She admitted to giving former railway minister Liu Zhijun $8 million between 2008 and 2010 in exchange for railway contracts and to making over $300 million between 2004 and 2011 by introducing Liu to others who then bribed him for contracts.

Gong Aiai, former deputy head of the Rural Commercial Bank in Shenmu County and representative to the local people’s congress denied charges of forging and trafficking in official documents. Netizen’s had posted allegations online as early as January claiming that Gong owned dozens of houses in Beijing and a fake ID card under the name Gong Xianxia. Gong claims she gained her wealth through the family business. Police have arrested seven government officials for forging ID cards for Gong.

Bai Yongqiang, the police chief of Zhangjiachuan County in Gansu province, has been suspended from duty after internet users accused him of funneling $8,170 in bribes to his corrupt superior, Shi Juping. Shi, the former deputy police chief of Tianshui city, is currently in jail for bribery. Bai’s suspension comes after local police released 16-year-old Yang Hui from jail for spreading online rumors. Bai was widely believed to be the cause of Yang’s detention, which sparked public anger and pushed netizens to publish reports on his misconduct while in office.


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