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December 11, 2012

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Official, wife tried for illicit riches of 70m yuan

THE trials of a former high-level urban planning official and his wife in Changsha, capital of Hunan Province, will continue today on charges they illegally amassed 70 million yuan (US$11.2 million) in ill-gotten gains.

Gu Xiangling, former deputy director of Changsha Urban-Rural Planning Bureau, is accused of taking bribes of up to 21 million yuan and being unable to explain how he obtained 16 properties and other assets valued at 49 million yuan, Hengyang City prosecutors said. The trials, which started yesterday, are expected to take three days in the Hengyang City Intermediate People's Court.

His wife Wu Lijun, former director assistant of Changsha's urban planning and design institute, also is on trial for taking bribes and covering up his husband's crimes, Legal Daily reported yesterday.

The corruption investigation began in early 2011 when Wang Ming, a local developer, offered a tip regarding Gu's mistress Li Lan, in order to get a lighter penalty after he was found to have bribed a provincial official, prosecutors said.

Wang told prosecutors that Li had taken a 387,200 yuan commission over some contract work, but the money ended up in Gu's hands. Li was not charged.

Gu tried to throw investigators off the trail, but was unsuccessful, the Beijing-based newspaper said.

In July 2011, Gu and his wife were placed under "double designation," an investigative procedure under which Party officials are ordered to confess or explain wrongdoings at a designated time and place. The couple was arrested in September 2011.

"Gu took most of the bribes between 2005 and 2009, when the city's real estate industry was booming," said Liu Jiancheng, deputy director with Hengyang City Anti-Corruption Bureau.

"More than 50 developers who run many residential complex projects in Changsha have bribed Gu," he added.

A local businessman surnamed Guo started his "cooperation" with Gu in 2001. Guo, under Gu's help, gained favors in bidding for land and found his construction plans were approved quickly, while Gu took 200,000 yuan in cash and stock shares worth 5.36 million yuan from Guo, prosecutors said.

Gu's position enabled Wu to win contracts for her coworkers, for which she took commissions, authorities said. Prosecutors said Wu earned 2.05 million yuan for steering 18 deals to two people.

Wu also is accused of transferring 55.77 million yuan of ill-gotten assets to try to hide their fortune.




 

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