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Former rail official admits taking US$7.8m in bribes
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The former deputy chief engineer at China’s railways ministry admitted bribery charges at his trial in Beijing yesterday.
Zhang Shuguang, who was also head of the transport bureau at the now defunct ministry, had been accused of accepting 47.55 million yuan (US$7.8 million) in bribes between 2000 and 2011.
Most of the money has been recovered.
The ministry was disbanded in March, with its administrative functions handed to the transport ministry and its commercial role given to a new China Railway Corp.
It has been linked with widespread corruption, with former minister Liu Zhijun given a suspended death sentence in July for taking 64.6 million yuan in bribes to help 11 people secure contracts and promotions. Zhang was dubbed Liu’s right-hand man after Liu became railways minister in March 2003.
Another high-ranking railway official, Su Shunhu, stood trial last week for allegedly taking 24 million yuan in bribes.
In recent days, a businesswoman linked to the ministry, Ding Shumiao, also faced charges of illegal activities worth 180 billion yuan. She was said to have given Liu 49 million yuan and arranged sexual favors for him, while successfully pointing him to 23 companies for more than 50 rail projects.
Zhang, 57, raised no objection to the corruption charges against him at the opening of his trial at the Beijing No. 2 Intermediate People’s Court.
He said he had been examining his wrongdoings over his past 900 days in detention. He believed the court would hand down a just verdict and he was willing to receive its punishment, the China Central Television reported.
Zhang allegedly used his position to award railway contracts to private companies which led to excessive bills for the government.
In one case, Yang Jianyu, the boss of Guangzhou Zhongche Railway Vehicles Equipment Co Ltd, gave Zhang cash and goods valued at 10.50 million yuan, the court heard.
Yang told the court that he sent Zhang’s mistress, Luo, 10 watches, 300,000 yuan in cash to buy a car and 16,000 yuan per month as salary though she didn’t have a position at the company. Yang said he “employed” Luo in order to curry favor with Zhang, the Xinhua news agency reported.
In return, Zhang helped Yang to get contracts for air conditioners in trains. Prosecutors said Zhang took Yang to dinner with train manufacturers, giving them a hint that they should favor Yang’s products, Xinhua reported.
The Blue Arrow, a type of high-speed train manufactured by Zhongche, was used on several routes in south and southwest China for a number of years. Though the trains lagged behind others in technology, they weren’t replaced until last November.
Though Zhang admitted taking bribes, he insisted that he was not the key figure in deciding to use the Blue Arrow trains. Before former minister Liu approved their use, Zhang said, he just made suggestions.
The court also heard that Ge Jianming, CEO of KTK Group, a train equipment supply company, had paid Zhang 8 million yuan. Wang Jianxin, legal representative of Wuhan Zheng Yuan Electric Co Ltd paid 10 million yuan, and Chen Bingyu, legal representative of Beijing Bode Transportation Equipment Co Ltd, paid 5 million yuan, according to Xinhua.
The Beijing court has yet to reach a verdict.
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