[ad_1]
Head of anti-corruption watchdog calls for strict investigation into corruption
The country’s top anti-corruption watchdog called for stricter investigations into corruption disguised as “co-investments” after such incidents were reported in several cities.
Articles by the Communist Party of China Central Discipline Inspection Commission and the State Supervisory Commission warned that this new form of corruption is often hidden behind a veil of legitimacy.
According to the article, Shen Junyu, a former deputy general manager of the asset management group of Hangzhou Economic and Technological Development Zone in Zhejiang Province, arranged for his family to hold stocks on his behalf, introduced third parties to buy stocks, and thereby He became a shareholder. A technology company in Hangzhou.
When he learned that the company was losing money, he used his position to allow others to buy back his stock and protect his funds.
Mr. Shen was sentenced to 10 years and six months in prison and fined 700,000 yuan ($97,200) for bribery.
Zhang Jinghua, a discipline inspector in Hangzhou’s Fuyang district, said the essence of bribery is the exchange of power and money.
Co-investment involves officials leveraging their powers to acquire equity, profit from their positions, and support economic activity through related approvals, allocation of funds, and influence on policy. .
In practice, it is a complex matter for authorities to engage in co-investment, and investigators must analyze the specific circumstances to determine whether the conduct constitutes a violation.
According to China’s Supreme Court and prosecutors, officials who use their positions to pursue the interests of others and receive financial rewards from companies forming “cooperatives” will be held liable for bribery.
The article argues that the rise of cooperative investment reflects a loosening of ideological vigilance among some party members and officials, putting them at risk of being “hounded” by malicious actors. They pointed out that their attention and energy was being diverted to exploiting loopholes and pursuing personal gain.
The article said that insufficient supervision and restraint mechanisms and the inherent risk that authorities will use their power to pursue profits are new drivers for cooperative investment. . It added that it is essential to strengthen institutional constraints, address oversight deficiencies, and move away from individual incident responses to institutional reform and inclusive governance.
The communiqué of the 3rd plenary session of the 20th CCDI of the Communist Party of China, released in January, stated that efforts will continue to focus on key issues, areas and goals, as well as new and hidden forms of corruption. There is. Punishing officials who collude with businessmen and other individuals was emphasized as a top priority. Additionally, efforts are being made to strengthen investigations into those giving and receiving bribes.
Chen Ling, an official of the Discipline Inspection and Supervision Commission of Yichang City, Hubei Province, said that when there is suspicion of cooperative investment, the investigative authorities should investigate whether the authorities have actually or sufficiently invested and whether the authorities actually participated in the management or operation. He said that it should be verified whether this is the case.
“We also need to determine the amount and distribution of dividends, justify profits, and ensure there is an assumption of investment losses,” he said. “If one party only enjoys the profits without assuming the risk, or if it assumes an unreasonably small proportion of the risk, it is clearly a violation of market rules.”
In the case of Mr. Zeng Xinian, former vice chairman of the Chinese People’s Political Consultative Conference in Wujiagang District, Yichang City, he has been a leading official in the local urban construction industry for many years, and through relatives he and two others were involved in the construction team. Supported the establishment. . The two funded the team that would become the company, and Mr. Zeng used his power to explore projects for the company.
In return, Mr. Zeng was given 20 percent of the company’s stock, through which he earned 20 percent of the company’s profits each year. He transferred his shares to his relatives, but remained in effective control.
In September 2022, Mr. Zeng was expelled from the party due to his bad behavior and his retirement benefits were terminated. He was sentenced to 13 years in prison and a fine of 1 million yuan.
Chen, the Yichang official, said that in addition to arrest and prosecution, illicit profits must be confiscated to eliminate hotbeds of corruption.
[ad_2]
Source link
