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Shanghai official accused of taking bribes

(China Daily)
Updated: 2008-09-03 08:54

SHANGHAI: Chen Shili, former Party secretary of Huainan, Anhui province, has been accused by the people's procuratorate of Fuyang city in the same province of taking more than 6.4 million yuan ($930,000) in bribes, Beijing-based Procuratorate Daily reported Tuesday.

During Chen's tenure in Huainan he took part in illegal land transactions that involved his acceptance of massive bribes, including more than 5.2 million yuan and $10,000 in cash and properties, cars, computers and gifts worth 1.14 million yuan, the newspaper said.

Chen's case emerged in the wake of the arrest of his former secretary Wang Chuandong, an official with the local city CPC committee,

Wang was also accused of bribe-taking.

A tomb removing scandal of 2006 marked the start of the 57-year-old Huainan leader's downfall, Beijing News reported.

That year, Chen told families to move the more than 100,000 tombs containing their ancestors' remains on Shungen Mountain in the city to a public cemetery - at a cost of 10,000 yuan each.

Ancestors' tombs are sacred, and as such not to be moved at any price, according to Chinese tradition.

Consequently, local citizens, enraged at Chen's demand, joined forces in sending a letter to the local official at the Xinhua News Agency bureau in July, accusing Chen of taking bribes and making unofficial loans to a South Korean company.

The South Korean-invested Xinhao Weaving Group of companies represented Chen's key feat in introducing foreign investors to the city of Huainan in 2002 in his capacity of mayor.

The firm, set up by businessman Lee Hyun-ho, obtained a big plot of land on which to build a South Korean industrial park in the city through sizable, interest-free bank loans arranged by Chen.

The Korean fled Huainan in September 2006 shortly before the company's critical financial state became apparent.

Chen also instructed a government-run company and several banks to loan Xinhao a total of 150 million yuan, the Beijing News said.

Two bank officials that made loans to Xinhao under Chen's orders were sacked in 2006 for dereliction of duty.

The Party's disciplinary committee in Anhui province began investigating Chen's activities in July last year after receiving reports from citizens and the media.