Archive for the 'corruption' Category

Hunan Cadre nailed for sex with Russian prostitute, Chinese netizens suspect it was a set-up

April 12, 2007

Chinese anti-corruption official sacked for Russian tryst
Apr 12, 2007, 11:27 GMT

Beijing – A Communist Party official who was a top provincial campaigner against corruption has been sacked after he was caught in a hotel room with a Russian prostitute, the party’s official newspaper said on Thursday.

Du Xiangcheng was expelled from the party and sacked from his post as deputy secretary of the party’s Commission for Discipline Inspection in the central province of Hunan, People’s Daily and other state media reported. Du was found ‘in a compromising situation with a Russian woman’ at a five-star hotel while he was in Beijing on official business last December.
The party’s central discipline commission has also opened an investigation into Du’s assets and financial dealings, the reports said. Du had cemented a reputation as a stalwart campaigner against corruption through a case against the head of discipline inspection in Hunan’s Changde city in 2004. ‘Cadres are only human and they have desires, so all leading cadres should be able to handle such tests,’ Du told the official Xinhua news agency during the investigation into the Changde case.

Read more of this story here Chinese version of the story on Netease here

According to the Chinese press this happened on December of last year, but according to Sing Tao and Boxun,this happened in December of 2005 and reported on it in March of last year. Why did Sina fudge the dates by a year?

Whats interesting are the Chinese netizen comments on the Netease story, there are over 2,700 of them and its the hottest story right now. Besides netizens professing outrage, many have serious doubts, and believe this was a setup. Netizens speculated that as the Discipline Inspection Deputy Secretary, he most certainly has a number of enemies. And why would someone who knows the ins and outs of vice-investigation be caught in such a dumb act? According to the Chinese version of the story, the room he was in was rented out by a friend, and he had been at a KTV earlier that night.

Some of the netizen comments:

在北京五星级酒店嫖娼居然出事,会不会因为得罪的人太多?告发者早有预谋。
Unexpectedly at a 5 star beijing hotel have an accident with a prostitute? Maybe its because he offended allot of people? The accusers here were premeditated

“他是个好官!没有人说他贪污受贿!
如果是坏官他这样的职务用的着去嫖吗?

肯定是被陷害的! 居然有警察跑五星级酒店去查!
“He is a good official! Has anyone heard that he was corrupt and accepted bribes?
If he was a a bad official, would he visit a prostitute under his official title?
This guy was framed! The police just all of a sudden go check 5 star hotels ?!”

被人盯上了的。
大家什么时候见过四星级以上酒店查房的?
Someone had their eyes on him.Who’s seen room inspections in 4 and 5 star hotels?

标准的蠢货,当上这么大的干部还去嫖娼.
Standard idiot, that big of a cadre still goes looking for prostitutes?

What really went on here I’m sure we’ll never know, but it highlights how fighting corruption and internal strife within the CCP does happen, and sometime’s its hard to tell who’s on what side.

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Three party cadres in Shanxi tried for slander in whisteblowing case

April 9, 2007

I have translated this article from the Southern Metropolis Daily which details how the government went about prosecuting with vigilance three mid-level party cadres who accused the local secretary of “losing the will of the people” after selling land for real estate development when it was was intended to be used for building parks or other forms of “symbolic architecture.” Original in Chinese can be found here.

 

Three cadres from Jishan, Shanxi punished for reporting questionable activities by local county secretary
Southern Metropolis Daily

After writing an anonymous letter reporting illegal activities, two cadres from Jishan in Shanxi province (山西稷山县) put in jail for slander, another already being sued.


Three section level cadres arranged and wrote out material reporting on the activities of Jishan County Party Secretary, then sent copies to 37 local government branches. After the local Public Security Office determined the identity of the materials authors, the local procurate brought the authors to court on the basis of slander. Currently, two of the authors have already been sentenced and another has been sued. Thus forth the local people have endlessly been talking about the crimes of the three cadres.

37 Copies of Anonymous Material titled “The People Call Into Question Party Secretary Li Runshan” Sent Out
On March of 2006, Shanxi Jishan county People’s Legal Working Committee (人大法工委) Director 杨秦玉 Yang Qinyu while talking with 南回荣 Nan Huirong and 薛志敬 Xue Zhijing at the country party committee’s office brought up the incident regarding some tracts of land that had been recently sold. Originally, the government had decided to build “Symbolic buildings” (标志性建筑) such as parks and statues, but it was suddenly sold to someone to be used for real estate development. The three thought that the government had made unpredictable changes in policy. After mentioning more of the counties problems they concluded that the local party secretary
李润山 Li Runshan had lost the will of the people. The three of them then decided to put these problems down in writing.

Nan Huirong did the writing while Xue Zhijing and Yang Qinyou stood by helping to revise and add additional points. After 10 days time, the letter titled <<The People Call Into Question Li Runshan>> was finished easily. The paper brought forth 4 problems with Li Runshan: “1: First we ask why did Secretary Li Runshan make sudden policy changes? Second, why has all the investment been met with disaster? Third, with such air of importance what kind of work does the secretary do in his presidential suite? Fourth, while your financial resources have swelled why haven’t our salaries moved a bit?”

“首问书记李润山,朝令夕改为哪般?二问书记李润山,为啥引资遭祸端?三问书记好威风,总统套间办啥公?四问书记财力涨,为何工资老不动?”

After every “Question” there were detailed explanations written proving their claims. At the end of the document it was signed by “The Tongue-tied of Jishan”

With concern for their safety, after writing the essay Nan Huirong went to a copy center in the nearby Houma City and made several copies, then he gave it to Yang Qinyu who sealed the envelopes and sent them out from Houma City. Their document was sent to the Party Secretary and Majory of Yuncheng City, the 4 biggest leadership groups in Jishan and all the leadership in every government department, in total there were 37 copies.

Participants arrested

Public Security Bureau Chief Personally Conducted the Interrogation with the Party Secretary

Just before dawn on 4/19/2006, Nan Huirong was brought by 6 police officers to the Jishan County Public Security Department’s Criminal Unit for questioning. After daybreak, he was sent to Pinglu County police station for further questioning which was over 100km away. 2:00pm that afternoon, Nan Huirong finally admitted that he had written the letter. Two hours later he was officially detained on criminal charges and sent to the Pinglu county detention center.
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Paulson seems to be playing his cards right

March 24, 2007

Last year US Treasury Secretary Paulson during his September trip to China, made a rare first stop in Zhejiang to meet with then Party Secretary Xi Jinping because he regarded him as a rising star among the communist party. It seems he was dead on.

Today China’s state media officially announced that Xi Jinping will take over from interm Shanghai Party Secretary Hanzheng and will now be the perminent secretary of China’s largest and most important economic center. He also gets a seat on the politburo. Last year former Shanghai Party Boss Chen Liangyu and protege of Jiang Zemin was ousted for corruption charges in a scandal that gripped the country.

It will be interesting to see what this will do for Paulson and his long term China goals. It’s also questionable if his goals can even be long term, after the 08′ presidential elections his own political future is in question as well.

Links:

原浙江省委书记习近平接任上海市委书记 Singtao.net

习近平调任上海市委书记 BBC Chinese

Xi Jinping’s biography on China Vitae

Paulson makes “important trip” to china for trade IHT

Interview with China’s most incredible holdout

March 22, 2007

This is a follow up on my previous posts with regards to “China’s most incredible holdout”, where a housing dispute led to the developer digging a moat around someone’s house who refused to move. This post is the translation of an interview with the owner of this “nailhouse” on an island, 40 year old Mrs. Wuping.

According to the interview, all Mrs. Wuping wanted was a space of comparable footage in the new building but the developer just wanted to give her a small sum of money. The local press was also forbidden to report on the story and the developer worked with the local government and courts to coerce Mrs. Wuping.

In this long interview you get an inside look into the local politics of relocation and the kind of difficulties people face if they chose to fight the developer.

You can also watch a CCTV legal society TV program which includes interviews with the developer and Mrs. Wuping and a number of Chongqing residents. Link to video HERE.

Translated from Chinese, original can be found here.
Another interview from a Beijing newpaper 新京报 here

Mrs. WupingOn March 21st China.net reported that “China’s Most Incredible Holdout” which caused a huge stir on the Internet will soon disappear. Yesterday Chongqing Jiulong Hill District court held a hearing and ruled that the owner of the property (the holdout) has until the 22nd to tear down the building. Chongqing Court decides “Histories most incredible holdout” must relocate in three days became one of today’s hot topics on web forums throughout china. The following is the transcript of a telephone interview with the household’s owner, Mrs. Wuping

Facing the notification: I don’t have the power to appeal

Host: We saw the Chongqing courts decision on the Internet, can you explain to us in simple terms what the situation is?

Wuping: Among the residents moving, I am the largest private property owner, furthermore you can basically say I am the only one who has complete papers, such as a property rights land right certificates, they both clearly indicated that it is a building zoned for business. At that time I had just finished renovations, and they (the developer) said they had to tear everything down and people had to be relocated, as a result this was really damaging for us. According to my property right certificate, I am clearly in ownership of 219 square meters, so for this use it should be returned to me.

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War on Corruption

February 23, 2007

Pick up any Chinese newspaper, magazine or read a blog online and you’ll probably heard about some corrupt official in some province, city or SOE that has run off with prostitutes and dirty loans and settled down in Canada. Hu, in what some have called simply a house cleaning of his adversaries, has been waging a “war on corruption.” In the latest news, China is looking to establish a corruption prevention center. Forget what the experts say, what do Chinese netizens have to say.

Comments are in Chinese from 凯迪社区

鬼才相信自己领导自己能反自己的腐败
“Only ghosts believe their own leaders can prevent their own corruption”

又多了一个潜在的腐败单位
“another potentially corrupt unit”

老百姓惨了,又要一个分享腐败成果的部门。
“This is miserable for the people, another department to share the profits of corruption.”

世界上只有一种真正的监督,那就是新闻自由下的监督
“there is only one real kind of supervision in the world, thats supervision under a free press”

如果国家预防腐败局的官员贪腐字怎么办?可以再建立一个预防国家预防腐败局腐败厅啊!嘿嘿,
“What happens if the officials in the State Corruption Prevention Department are corrupt? You can establish a State Corruption Prevention Department Corruption Office, hehe.”

就一个党派 没有竞争的 很难发展好啊
“just one political party without competition, its hard to develop well.”

中国筹建拥有强大权力的“国家预防腐败局集团公司”。
China is preparing to build a strong and powerful “State Corruption Prevention Department Conglomerate & Co. Ltd.”

可以预见,国家预防腐败局将成为今后油水最多的衙门。”it’s foreseeable, the State Corruption Prevention Department will become the most profitable government office”

China’s non-market economy, a Chinese perspective

February 20, 2007

This is a very interesting editorial that was featured in 南方日报 Southern Daily a few days ago detailing how private industry in China has been cut out by large SOE’s due to the enormous advatage their government connections have given them, most important being regulatory power over the market.

I have translated this from Chinese, original can be found Here


China’s Biggest Economic Threat Has Already Emerged

Ye Tan, Southern Daily

In the past few days, like a shooting star that is gone in a flash, the immeasurable amount of young female powerful elite has aroused people’s intense interest in the bagua or balance of finance and economic problems. Strip the cover off these ornamental surface issues, and the story behind the news is a refraction of private enterprises frantic inability to find a return on investment. Another just as important piece of news that lightly glided out of people’s vision: in 2006 State Owned Enterprise (SOE) economic performance increased by 18.2%, absolute profit rose, but relative decline, after experiencing the high growth of 2003 and 2004, centrally controlled SOE’s profit rate of increase declined by over 5%, central SOE’s have entered a declining passageway, the realization of over capacity and rampant production has taken a step closer to reality.

Private capital is unable to find a channel of investment, the commanding height of SOE’s monopolized profits are entering a decline, both sides folded together are the biggest threat to China’s economy. A key factor has been that until now, China has been unable to devise a way to efficiently use it’s resources. With the lack of high-efficiency enterprises, which are propped up by the internal demands of the market, this could imply the development of Chinese enterprises is unsustainable.

The worry of China’s SOE monopolized profits is being completely replaced by an even deeper worry: if the production of these high-grade, resource consuming gigantic enterprises see a decline in production, or if medium and small sized companies are unable to absorb the supply in raw materials provided by big SOE’s in China, what kind of economic situation will emerge?

This gradually recessive danger is emerging on the surface. The newest data from the State Statistics Department show that in 2006, raw materials and fuel wholesale purchasing prices increased by 6%, and that factory pricing of industrial products only increased by 3%. China’s capacity of production is in serious excess. The previous figures reflect the reality that the chain of raw materials and finished products between the upper and lower reaches of industry has become disconnected. The upper reaches of industry depend on price fixing power in order to increase production, and when they actively seek to make people admire their returns on investment, the lower reaches of the economy is left to do nothing but piece together a fight for survival. On the other hand, due to the decrease in profits for large-scale SOE’s, whose profits come from bank loans and the capital market, both which are almost completely owned by large SOE’s, we may yet see another push of state assets being shifted to the capital market.

Recently, this overcapacity has existed due to two main characteristics: the first is much of this phenomena been seen in the capital-intensive heavy chemical industry, for example: steel, electric power, petrochemicals, auto industry and construction materials etc. Secondly, government investment or government leadership takes up a considerable portion; the majority of industries experiencing overcapacity are solely dominated by large SOE’s. This reality warns us that the intentional and controversial bias in planning the allocation of resources has not achieved much success. Special privileged SOE.s in order to construct a high rate of return on investment, contrary to planning can create a devastating aftereffect.

Hong Kong Chinese University president Mr Liu Zunyi in the past pointed out that macro-economic in-stability is because of the bankruptcy of large scale enterprises, their failure will very quickly influence other companies. These failed companies faced with a heavy burden, will drag suppliers with them, and then suppliers will pull in other companies. This chain of events will ultimately lead to the closing of the banks, thus leading to a full-scale economic crisis. Even if it doesn’t lead to a full scale crisis, the dramatic reduction in costs by large companies in the heavy chemical and natural resources industries will still be hard for people to bear; banks, tax revenue, employment and the stability of society will all be seriously effected.

Both upper and lower enterprises can create a healthy industry chain through the means of implementing market adjustment to the pricing system, thus reaching a rough balance in supply and demand. Yet, due to the systematic differences in China’s upper and lower reaches of it’s economy, in reality what exists is a system of plundering, oppression and exploitation, leaving insufficient small companies with a thorough loss of space for making a profit. Today, with private capital losing space for survival, it is also time for the glacier like big companies to melt away.

This model will not only harm private industry concentrated at the lower reaches of the economy, but will sooner or later lead them to falsely accuse big industry for not allowing the enterprising of private companies, blind production, and the loss of global market price fixing ability. Increasing domestic demands and exports in order to solve this problem is not a realistic solution, expanding internal demand over the years has not seen significant progress: China’s trade surplus has already become the biggest drawback of economic development, leading to conflict at every turn. So-called expanding exports are no more than a meaningless term. The first step in solving these hard problems is immediately cutting preferential treatment for heavy industry. These man made special privileged companies simply in the pursuit of quick profits, are endangering China’s long-term economic security.

MIT processor Huang Yasheng’s research has indicated that China’s small and medium sized entrepreneurs after the golden boom of the 1980’s and early 1990’s have sunk into decline. The scope of China’s private industry is still incomparable to the peak time of growth for India’s private industry at the beginning of the 1980’s. (It created large barriers to limit the nationalization of banks, restriction of foreign investment, and the heavy hindrance of private enterprise.) The exhaustion of China’s private companies can be seen everywhere. Private industry is still unable to transgress the market entry threshold, large declining private companies have been bought out by SOE’s, investment faces obstructed channels, entrepreneurs are often chased off by the government, thus forth large private entrepreneurs seek the refuge with SOE’s, using a “Mixed economic model” to achieve success. These conditions without exception reflect the helplessness of private investment. Central SOE decrease in profits, represent private investments lack of a fair competitive platform, these hidden dangers are already unable to be covered up.

We almost always seem to fall into a state of hallucination upon hearing the cheery figures of China’s SOE’s, but their profit sources and investment return should warn us, this hallucination cant sustain for long, as this non-market economy which is the biggest threat to China, has already begun to emerge.