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Corruption: What a Difference a Month Makes!

Screenshot at Chinese news on 12th January 2011. about Liu Zhijun.

Screenshot from Chinese news on 12th Feburary, 2011, Liu Zhijun.

Liu Zhinjun was the Minister of Railways in the People's Republic of China from 2003 to 2011. Liu was dismissed as Minister on February 25, 2011, because of allegations of corruption.

Bank Of Tianjing Banked On Bo Xilai's Promise PDF Print E-mail
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Recently, Chinese mainland media reported that the Bank of Tianjing has 152 non-performing loans. These include 66 loans as bank advances (money lent to princelings, children of high ranking communist officials, without collateral) and 86 bank loans. The total sum of the loan principals amount to ¥746 million yuan and default interest totals 159 million yuan (not including compound interest and penalties).

Of the 152 loans, 25 loans belong to companies owned or affiliated to Dalian Shide Company, with a total non-performing loan value of more than ¥100 million yuan, including the Tianjin Shide Logistics Co Ltd, Tianjin Shide New Building Materials, Beijing Shide Business Logistic Co, totalling 25 loans.

The chairman of Dalian Shide Company, Xu Ming was Bo Xilai’s biggest financial donor using money that came from bank advances.  This money allowed Bo Xilai and his family to live a jet-set life style. Allegations were made during Bo’s trial that Xu provided $3 million to help buy a villa in France for members of the Bo family, helped pay for family travel to Europe and Africa and helped support Bo's son's college expenses and his extravagant life style on campus.

Xu was previously the chairman of Dalian Shide Football club and vice-chairman of the Commercial Bank Co Ltd of Dalian City. Since Xu was investigated by the Central Discipline Commission (Commission of Disciplinary Inspection of the Central Committee of the CPC) because of his links to Bo Xilai, many banks began a thorough investigation into the loans related to Dalian Shide.

Xu Ming who is also the vice CEO of the Bank of Dalian, is now facing multiple court cases from different financial groups. One insider at the Dalian Banking Bureau said that the Bureau was worried about the loans of Dalian Shide, as the majority of its loans don’t have collateral; they are merely supported by credits.

The media also disclosed that the current total debt of Shide amount to 12 billion yuan.

Bo Xilai was charged with accepting bribes from Xu Ming, the chairman of Dalian Shide Group Co Ltd, amounting to 20 million yuan this year. Bo Xilai also spoke about this in his own trial in August this year, "Xu's company gained enormous benefit due to my support, so Xu offered some payback to my son or my family. This is understandable."

One US dollar buys approx 6 Chinese yuan renminbi.



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