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CHINA UNCOVERS 240 CORRUPTION CASES The China Banking Regulatory Commission
reports reforms of the nation’s banking industry has uncovered 64 cases of
fraud averaging more than $123,500 each in just the first six months of
2005. Bank governors will no longer
be able to approve loans independently to powerful industry insiders
appointed by the ruling Communist Party.
Expansion and more frequent audits together with the ratification of
the United Nations Convention against Corruption will make it easier to
extradite officials and recover stolen assets. Hundreds are
reproved by
leaders tackle
corruption.
Prosecutors discuss hunting fugitive corrupt
officials.
NOT EVEN THE CCP SHOULD
STEAL STATE FUNDS: AUDITOR. China’s
National Audit Office (NAO) yesterday released its finding that over US$170
million of public funds was stolen or misused by officials over the past
year. The NAO director, Zhang Qiuxia,
stated that the NAO will audit departments and institutions of the CCP’s
Central Committee in the future. Last
year’s audit revealed that 55 ministries and commissions embezzled
funds. The NAO also found that 788
enterprises avoided paying a total of 25.1 billion yuan (US$3.5 billion) in
taxes over 2002. (Taipei Times, July
8, 2004, summary by Tom Stutsman). GIVE THE KNEELING VICE
MAYOR A “REWARD CAKE.” Li Xin, the
former vice mayor of Jining City in China’s Shandong Province, first
kidnapped and beat, and then knelt down before and begged for forgiveness
from a potential informer. Li Xin
founded a business in his son’s name with Li Yuchun and resolved to earn 10
million yuan (US$1.2 million) per year.
Li Xin later used this company to launder money. Li Yuchun soon resolved to quit the
illegal business, and Li Xin responded to this by kidnapping Li Yuchun and
beating her almost to death. His
actions toward Central Discipline Inspection Commission officers are well
known. He refused to say anything in
the beginning, then wept, and finally knelt down and begged for forgiveness
and leniency. Li Xin should be given
several “reward cakes” for his foolish acts, which include allowing
incriminating photographs to be taken of him with accomplices, letting Li
Yuchun go after kidnapping and beating her, and using his real name to
register for a room for 83 days at a hotel that he clearly could not afford
with his official salary. (Tu Xunlei,
Youth Times, July 29, 2004, summary by Tom Stutsman). CREATING HONEST AND CLEAN
POLITICAL CULTURE. Anti-corruption
efforts need to include steps to change the current political culture to have
deep and lasting effects. If
appropriate political culture does not serve as the basis of governance and
corruption is seen as “appropriate,” it follows that other measures to
eliminate corruption will have much less effect than they otherwise
would. Because of this, Zhejiang
Province has established a program to change the current political
culture. According to figures
released by the Central Discipline Inspection Committee, 84,000 party members
were disciplined for corruption between 1997 and 2002, almost 140,000 of
which were expelled from the Party.
People applaud the accomplishments of the organizations that have
caught and punished so many corrupt officials, but at the same time are
troubled that corruption is seen as “appropriate” and the current political
culture is very conducive to corrupt behavior. The fundamental problem with the current political culture is
illustrated by the fact that people who use their government positions for
their personal benefit are “talented,” while officials who refuse to accept
bribes are seen as “hypocrites” or “nonconformists.” Zhou Guofu, the chairperson of the
Zhejiang Provincial Committee recently stated that “there are many factors
that produce the current problems of corruption; culture is one factor that
cannot be neglected.” The
first series of books on clean and honest political culture in China was
published this year, and a conference was held at the Great Hall of the
People in Beijing on May 28 to discuss the new books. Other activities that have taken place
around the country include anti-corruption poetry readings, spare time
propaganda teams and school programs.
Schools in Ningbo and Hangzhou have implemented school programs to teach
elementary school students about corruption.
Over 90% of the students told their parents “if you want to be an
official, you need to be clean and honest.
You can’t take bribes” after participating in the school program. The people’s adoption of clean and honest
political culture will be produce fundamental, long-lasting and widespread
changes in individuals’ behavior and in society. (Cui Shijin, People’s Daily, July 27, 2004, summary by Tom
Stutsman). A CORRUPT OFFICIAL OF SICHUAN BANK IS EXECUTED. Xiao Hongpo, a former official at the
Dazhou branch of China Construction Bank, was executed on July 9. Xiao embezzled over 4.08 million yuan
(US$493,000), much of which he spent on gambling and supporting eight
mistresses. While saying goodbye to
his daughter, he said the following: “While in prison, I came to understand
true significance and value of life; life is beautiful.” Why do corrupt officials only make this
realization after being convicted of their crimes? (Guangzhou Television Station, July 13, 2004, summary by Tom
Stutsman). WUHAN INTERMEDIATE PEOPLE’S COURT INVITES SENTENCED
CORRUPT OFFICIALS TO GIVE JUDGES A “CAUTIONARY CLASS.” Two former officials sentenced to prison
for corruption yesterday accepted an invitation to go to the Wuhan Intermediate
People’s Court to give judges a “cautionary class.” Gong Xudong said during the cautionary class he stated that he
worshipped money, which made him use his position as a cadre to commit crimes
against the people. He painfully
stated that he slipped deeper and deeper as he took bribes, thereby writing
one crime after another in his list of convictions. 60-year-old Liu Youqing told his listeners that “I am a
farmer’s son. I wanted to dedicate
myself to serving the Party and the people when I first starting serving my
position. However, I later forgot the
tenet of serving the people. I was
defeated by the presence of monetary gain.”
The two former officials convicted of corruption went on to state that
one should treasure her or his political reputation and career, and the
importance of using the power a government position allows to benefit the
Party and the people. (Chutian
Capital Paper, July 17, 2004, summary by Tom Stutsman). ONLY ONE “CORRUPT
BELT OFFICIAL?” Hu Fangyu, the former
vice-chairperson of Guizhou Province’s Changshun County Chinese People’s
Political Consultative Committee and Changshun County Development Planning
Bureau, was recently sentenced to 11 years in prison for corruption. Authorities confiscated over 449,000 million
yuan (US$54,000) of his personal property after he was convicted. How his crimes were discovered has the
makings of a comedy. His pants were
stolen from his room one night while he was sleeping, and the thief threw his
pants onto the side of the road after taking his wallet. Two elementary school students found the
pants days later and turned them into the police station. The police soon discovered that the belt
had a secret compartment which contained deposit slips for huge amounts of
money. Even though this case may make
people laugh, it is easy to imagine how much damage Hu Fangyu would have
continued to cause if his pants would never had been stolen. (Zhu Qifu, Shenyang Today, July 30, 2004,
summary by Tom Stutsman). A BELT LEADS TO A
CORRUPTION CASE. Hu Fangyu, the
former vice chairperson of Guizhou Province’s Changshun County’s Chinese
People’s Political Consultative Committee and Changshun County’s Development
Planning Bureau, was recently convicted by the Guizhou Province, Duyun City
People’s Court for corruption. He was
convicted of accepting 43,200 yuan (US$5,225) in bribes and embezzling
152,600 yuan (US$18,452) worth of state property. (Xi’An Evening News, July 29, 2004, summary by Tom Stutsman). 500 GOVERNMENT
OFFICIALS HAVE STOLEN OVER 70 BILLION YUAN.
Shanghai Overseas Chinese recently published its “List of the 50
Biggest Corrupt Officials,” with Li Jiating, Li Zhen, Cheng Kejie, Liu
Zhongshan and Zheng Daofang topping the list. Over 500 individuals suspected of committing economic crimes
and then fleeing the country remain free, taking over 70 billion yuan (US$8.4
billion) with them. In May of this
year, the Ministry of Public Security released some very surprising figures,
including the fact that since 1998, the Ministry has only caught 230 of the
suspects who fled the country. These
figures illustrate what a huge problem corruption is in China and the need to
reduce it. Chinese representatives
met with representatives from other ASEAN member countries in early July, a
major accomplishment of the meeting was the promulgation of a document that
states how China is currently battling corruption. (Heartland Morning Post [Sichuan Province], July 24, 2004,
summary by Tom Stutsman). RANKINGS OF
CHINA’S BIGGEST CORRUPT OFFICIALS.
Shanghai Overseas Chinese recently published an article titled “List
of China’s 50 Biggest Corrupt Officials.”
The list included Yu Zhendong, Chen Manxiong and Zhang Zonghai. Yu Zhendong collaborated with Xu Chaofan
and Xu Guojun to embezzle more than 483 million yuan (US$58.4 million) while
serving as the president of the Kaiping Branch of the Bank of China. Chen Manxiong and his wife embezzled more
than 420 million yuan (US$50.8 million) while he was serving as the president
of the Guangdong Zhongshan City Industrial Development Company. Zhang Zonghai, a party member who formerly
headed the Chongqing Radio, Film and Television Bureau, stole 200 million
yuan (US$24.2 million) for gambling excursions to Macau. (Guangzhou Television Station, July 23, 2004,
summary by Tom Stutsman). Two more BOC Hong Kong executives probed for alleged graft. According to BOC Hong Kong (Holdings) Ltd., the locally listed arm of one of the mainland's top four banks, former chief executive and a former senior official are being investigated by China's judicial authorities for alleged graft. Liu Jinbao, ex-company chief executive and Zhang Debao, ex-general manager of Liu's office, are being probed in connection with "unauthorized distribution for personal purposes of certain funds belonging to the controlling shareholder of former constituent banks. (Channel NewsAsia, 06 August 2004 summary by Sherldine Tomlinson).
For older stories before August 2004 go to http://www.fordham.edu/economics/vinod/chinaold-1.htm |
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Design:
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Copyright:
Hrishikesh D. Vinod 2000 |
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