Former Chairman of Chinese State-Owned Enterprise Accepts Bribes Worth Over 300 Billion Won... Largest Since Establishment

Chairman of Asset Management Firm Admits to Bribery Charges

[Asia Economy Beijing=Special Correspondent Jo Young-shin] A former chairman of a major state-owned financial enterprise in China has been revealed to have received bribes amounting to 300 billion won, the largest since the founding of the People's Republic of China.

According to Xinhua News Agency and Liberty Times on the 12th, Lai Xiaomin (賴小民), former chairman of China Huarong Asset Management Co., Ltd., admitted to charges of accepting bribes totaling 1.788 billion yuan (approximately 305.1 billion won) during the first trial held yesterday at the Tianjin (天津) Second Intermediate People's Court.

Lai Xiaomin had worked for a long time at the People's Bank of China and the China Banking and Insurance Regulatory Commission, and had served as a senior executive at Huarong since 2009. Huarong was listed in Hong Kong in 2015 and has 31 subsidiaries.

According to the prosecution by Chinese authorities, from 2008 to 2018, Lai used his position as director of the General Office of the China Banking and Insurance Regulatory Commission, then as president and chairman of Huarong, and party secretary of Huarong Xiangjiang Bank Co., Ltd., to provide benefits to others by abusing his official duties.

He also used his authority and status to attempt to give undue benefits to others through the official acts of foreign-related personnel and illegally received property from related organizations and individuals.

Lai Xiaomin also admitted to embezzling 25.13 million yuan (approximately 4.28 billion won) of public funds from 2009 to 2018, and despite being already married, he lived as a spouse with another person for a long time and fathered two sons, admitting to charges of bigamy.

He was disciplined and removed from office in April 2018 due to these charges and was prosecuted by the public prosecutor in February 2019.

The Central Commission for Discipline Inspection previously reported that "Lai Xiaomin abused his power, acted recklessly, was corrupt and degenerate, and led an immoral and extravagant lifestyle," adding that "political and economic issues were intertwined."

It was also broadcast in January on China Central Television (CCTV)'s anti-corruption program "National Supervision" that Lai said, "(The discipline committee secretary of Huarong) is my subordinate, so it is difficult for him to supervise me."

According to CCTV, investigators searched Lai Xiaomin's residence and found cash amounting to 270 million yuan (approximately 46.08 billion won), which is the largest amount of cash seized on-site in a corruption case since the founding of China.

The previous highest amount of bribery in China was 1.04 billion yuan (approximately 177.5 billion won) by Zhang Zhongsheng (張中生), former vice mayor of Lvliang (呂梁) City, Shanxi (山西) Province, who was executed in March 2018.