Former official jailed for corruption | Shanghai Daily

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Former official jailed for corruption

A FORMER high-ranking official in Zhejiang Province has been sentenced to three and a half years jail by Yuhang District Court on corruption charges.

Cai Jidong, the former director of Shaoxing Communications Bureau, was jailed last week for misuse of authority and taking bribes from Liu Genshan, Shanghai's "King of the Road," the Hangzhou-based newspaper Dushi Kuaibao reported today.

Cai is among a handful of government officials in Zhejiang Province involved in the alleged corruption case of Liu Genshan who allegedly withdrew 150 million yuan (US$21.7 million) in registered capital in 2007.

Zhang Laixing, the bureau's former deputy director, and Feng Shunqiao, former secretary of the Zhejiang Province People's Government and Party Secretary of the Shaoxing People's Government, were also investigated by Zhejiang prosecutors for their roles in the case.

Cai took a management position at a salary of one million yuan (US$146,199) in a company controlled by Liu after he left his position as director of Shaoxing Communications Bureau in 2007.

According to Public Servant Law, a senior official in a government department is forbidden from taking a role in a company directly linked to the post within three years of leaving it.

The court found that Cai used his authority to help Liu get a 30 percent share in Shaoxing Yongjin Highway Construction and Development Co for 127.04 million yuan. The National Audit Office found the project's market price was worth at least 433 million yuan.

Cai was found to have arranged a deal in 2004 between Liu's Shanghai Maosheng Development Group and Shaoxing Transportation Investment Co at a price of 111.66 million yuan without proper evaluation or a public bidding process, thus violating regulations.
Cai asked Chen Jianming, an evaluator at Shaoxing Datong Evaluation Co, to produce a valuation of 108.86 million to be "lower than the transfer price".
But to their surprise, Zhejiang Provincial Communications Department turned down their agreement and stopped the stock transfer.
The two parties raised the contract transfer price to 127.04 million under the instruction of Cai and the Land Resources Bureau granted approval. Yongjin Highway opened to traffic at the end of 2005 and became Liu's cash cow.



 

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