Draft to expand criminal charges to private firms

Corruption among private enterprises is expected to be further combated while stronger protections for entrepreneurs will be promoted, an official from the Standing Committee of the National People's Congress, China's top legislature, said on Friday.

Zang Tiewei, spokesman for the NPC Standing Committee's Legislative Affairs Commission, said at a news conference that a draft amendment to the Criminal Law is likely to expand some criminal charges involving State-owned employees to private sector employees.

The charges in question include illegally benefiting friends or relatives, offering discounted shares through malpractice and illicitly selling off company assets, Zang said, adding that "the expansion aims to provide a legal basis for fighting corruption within private firms and give stronger protection to entrepreneurs".

While focusing on anticorruption in private sector firms, the draft amendment also specified circumstances in which providers of bribes should be severely punished, Zang added.

The draft amendment will be submitted for review at a session of the NPC Standing Committee, which is scheduled to be held in Beijing from Monday to Friday.

During the session, lawmakers will also review another draft revision to the Charity Law, which clarifies that individuals in need of such assistance must provide accurate information when launching or collecting donations on internet platforms, instead of fabricating or concealing the facts to conduct donation fraud. Online platforms for individuals to seek donations should be designated by civil affairs departments, and the authenticity of information released on the platforms must be verified, Zang cited the draft revision as saying.

"In recent years, with the development of internet information and technology, many people have preferred to ask for help online, leading to a rapid growth of relevant service providers," he said.

Zang praised the positive role of the platforms in helping patients with serious diseases collect medical fees, but added that "the service providers are sometimes disordered in management, causing negative effects to the credibility of the entire industry and even the development of charity". Therefore, the NPC Standing Committee intends to add content regarding more scrutiny of online donations launched by individuals in the draft revision, he added.

Considering that a lack of donation transparency has been a major complaint among the general public, the draft lists various requirements.

For example, it requires that within three months of the end of public fundraising activities or charity projects, organizers should disclose details of fundraising, project implementation and the use of the raised funds or goods, Zang said.

It also states that funds raised or materials collected — and how they are distributed or used to cope with major emergencies — need to be made public at least once every five days during the emergency and rescue period, he added.

In addition, the NPC Standing Committee will review draft revisions to the Organic Law of the State Council and the Company Law at next week's session, with discussions on draft laws on food security, emergency response and management as well as rural collectives on the agenda. Draft revisions to the Frontier Health and Quarantine Law, along with multiple reports, are also due to be reviewed during the session.