Corruption alleged in jailing of airline boss
By Bob Yang |
September 2, 2011, Friday
|
Print Edition
Print Edition
THE jailed boss of a bankrupt Chinese private airline yesterday accused the deputy mayor of central China's Wuhan City of soliciting bribes, extending black market loans and using his power to put him behind bars.
At a press conference in Beijing, Lan Shili, the 51-year-old former boss of Wuhan-based East Star Airline, released a statement alleging corruption by Yuan Shanla, the city's deputy mayor, through his niece Lan Jianmin.
The statement, which was also published on the Internet, accused Yuan of soliciting bribes of more than 400,000 yuan (US$62,700) from Lan between 2007 and 2008.
Yuan was also accused of collaborating with local gangs to extend black market loans of 70 million yuan to Lan in 2008 when his airline was greatly affected by the global financial crisis.
The statement said Yuan colluded with the head of gangs, surnamed Xie, to force him to mortgage more than a billion yuan in assets and that had led to the bankruptcy of the airline in 2009.
The deputy mayor is also alleged to have embezzled 50 million yuan government money to support the gangs.
Lan Shili said Yuan had forged evidence to put him behind bars.
Lan was jailed for four years in April last year for tax evasion.
A spokesman for the Wuhan City government said they had heard of the allegations but had no official response so far.
On March 13, 2009, East Star Airline rejected a government-initiated takeover by the parent group of Air China, according to previous reports.
Two days later, its operations were suspended by the industry regulator after a suggestion of the Wuhan City government, the reports said.
At a press conference in Beijing, Lan Shili, the 51-year-old former boss of Wuhan-based East Star Airline, released a statement alleging corruption by Yuan Shanla, the city's deputy mayor, through his niece Lan Jianmin.
The statement, which was also published on the Internet, accused Yuan of soliciting bribes of more than 400,000 yuan (US$62,700) from Lan between 2007 and 2008.
Yuan was also accused of collaborating with local gangs to extend black market loans of 70 million yuan to Lan in 2008 when his airline was greatly affected by the global financial crisis.
The statement said Yuan colluded with the head of gangs, surnamed Xie, to force him to mortgage more than a billion yuan in assets and that had led to the bankruptcy of the airline in 2009.
The deputy mayor is also alleged to have embezzled 50 million yuan government money to support the gangs.
Lan Shili said Yuan had forged evidence to put him behind bars.
Lan was jailed for four years in April last year for tax evasion.
A spokesman for the Wuhan City government said they had heard of the allegations but had no official response so far.
On March 13, 2009, East Star Airline rejected a government-initiated takeover by the parent group of Air China, according to previous reports.
Two days later, its operations were suspended by the industry regulator after a suggestion of the Wuhan City government, the reports said.
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