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China Corruption Blotter (March 1, 2013)

The Gansu Higher People’s Court recently rejected the appeal of former Gansu Province Land and Resources Bureau deputy director Zhang Guohua against his life sentence. In June 2012, Zhang was found guilty of corruption involving $685,000. Zhang’s assets reportedly included an additional $1.6 million of unknown origin. His corrupt activities reportedly took place during his time as Tianshui City vice mayor and deputy director of Gansu Land Department. There, his influence extended to agriculture, urban construction, mining rights and developments, and human resources.

State-owned China Shenhua Coal to Liquid and Chemical Co. Ltd. chief accountant Wei Shuqing was handed a 20-year prison term. Wei reportedly collaborated with colleague Jin Xiaodong to solicit “service fees” of $577,000 from three audit firms (including Tianhua Zhengxin (Beijing) Accounting Firm), presumably in exchange for contracts. Wei also illegally reimbursed herself for health and beauty expenses with company funds.

According to netizens, a viral video showed an unidentified Kunming City (Yunnan Province) Traffic Transport Bureau deputy director engaging in illegal gambling with three officials from the Taxi Management Department. Kunming City Commission for Discipline Inspection confirmed they have launched a probe into the case.

A Beijing court sentenced Zou Yanyan to 15 years in prison for taking $961,000 from a friend of an official seeking a promotion to a deputy-minister level position. To engineer the promotion, Zou, a private citizen, reportedly promised to pass some of the money to another middleman, who would in turn bribe influential people within the provincial government. The court ruled the money need not be returned to the giver, but would be absorbed by the authorities. Media reports didn’t name the promotion-seeking official or his province.

Former Anren County (Hunan Province) Transportation Bureau deputy director Liu was sentenced to 10.5 years in prison and had $4,800 of his assets confiscated for corruption involving $140,800, as well as abuse of power. Liu reportedly used $43,000 to purchase a house for his mistress, and the rest for gambling. He also reportedly misappropriated petrol allowances allocated for rural bus companies.

Liu Rongzhao, former deputy mayor of Zengcheng City (Guangdong Province), was sentenced to life in prison for taking bribes of more than $1.6 million. His ill-gotten gains were reportedly gathered from Jan 2003 to Mar 2011. During this time, Liu was successively head of Xintang Town, Party secretary of the Working Committee of Licheng Street, and deputy director of the Standing Committee of the People's Congress of Zengcheng, before becoming deputy mayor.


Chua Guan Cheong is a senior journalist with ethiXbase and the China Compliance Digest.

For a limited time, subscribers to China Compliance Digest will receive the China Anti-Corruption Handbook (normally $750) and FCPA Blog membership (normally $495) at no extra charge. Details are here.

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