As part of our continued efforts to monitor the antibribery enforcement environment in the People’s Republic of China (PRC), our colleagues in Squire Sanders’ Shanghai office have graciously agreed to provide monthly updates of relevant developments in the PRC’s antibribery laws, regulations and government enforcement actions. The most recent developments are summarized below.
Enforcement Actions
(1) On December 15, 2011, Chen Haibo (“Chen”), former minister of Agricultural Department of Hunan Province, was sentenced to death on 2 years’ suspension in his trial for the offense of accepting bribes worth nearly RMB 19,610,000. During Chen’s term as the deputy secretary and later mayor of Changde Municipality, Chen purportedly provided improper benefits to bribers by means of securing contracting projects, providing preferential policies and deducting certain fees charged by the governments, all in violation of applicable law.
Chen Haibo’s son, Chen Hailiang, and Chen Haibo’s brother, Chen Gao, were also prosecuted for reportedly using Chen Haibo’s position as a state functionary to receive bribes.
(2) Lai Changxing, a former fugitive accused by the Chinese authorities of being responsible for one of the nation’s biggest corruption scandals, was indicted on January 6, 2012 after he was reported to have confessed to bribery and smuggling. The authorities have accused Lai Changxing of running a multibillion-dollar smuggling network out of Xiamen, in Fujian Province, in the 1990s, and say he was connected to some top officials in China. The smuggling operation was the largest of its kind since the Communist Party took over China in 1949, the authorities asserted.
(3) Zhang Jianqiang (“Zhang”), former chairman of China Football Association Referee Commission was indicted for allegedly receiving bribes in the amount of RMB 2,730,000. Zhang was accused by the prosecutor of receiving bribes as a non-state functionary even though Zhang claims all the bribes were received without his providing or promising to provide any improper benefits to the bribers.
Other Developments
The People’s Supreme Procuratorate Anti-Corruption Bureau released a statement in January, 2012 wherein it announced its determination to further intensify its investigation and prosecution of anti-corruption and anti-bribery cases.
