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August 7, 2012

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First probe into ex-rail minister complete

A PRELIMINARY corruption investigation into China's former Railway Minister Liu Zhijun has been completed, according to ministry sources.

Liu is alleged to have taken massive bribes to help a private businesswoman, Ding Shumiao, illegally profit from a number of railway projects, including one where she won a 3 billion yuan (US$471 million) contract.

The ministry also accuses Liu of "having degenerate morals" and "philandering with several women," terms referring to sexual liaisons and the keeping of mistresses, Caixin.com reported yesterday.

Most of the corruption allegations are said to involve Ding, president of an investment management company based in Shanxi Province.

The ministry said Ding sent three pretty women to Liu and he also received bribes from four other officials and kept many valuables, including calligraphy works and paintings. But the total amount of bribes hadn't been worked out, unnamed sources told Caixin.

An investigation into Ding's alleged criminal activities has finished and her case has entered judicial process, according to the report.

Serious violations

Liu has been under investigation since February 2011, when he was removed from his post on suspicion of "serious disciplinary violations." He was expelled from the Party in May.

The country's rapid railway network development slowed after the fall of Liu and the fatal bullet-train crash that killed 40 passengers in July last year in Wenzhou.

Liu, born in 1953 in central China's Hubei Province, began his career in 1972 as a railway worker and joined the Party a year later, according to his official biography.

Liu was appointed railway minister in 2003 and oversaw the expansion of high-speed railways with a total investment since 2004 reaching at least 2 trillion yuan.

It was during this period that Ding's Broad Union Group is said to have benefited from being the China's only producer and maintainer of train wheel sets, winning contracts worth more than 2 billion yuan, including 800 million yuan from construction of the Shanghai-Beijing route, the report said.

In 2008, she gained exclusive rights to operate advertising in all high-speed railway stations across the country.




 

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