Tycoon may have taken kickbacks
By Zhang Xuanchen |
March 1, 2011, Tuesday
|
Print Edition
Print Edition
A RAILWAY magnate may have used her ties with the former railway minister to help state-owned enterprises win projects and earn 800 million yuan (US$121.64 million) in return, it was alleged yesterday.
Ding Shumiao, 56, a major equipment supplier to the high-speed railway industry, allegedly bribed Liu Zhijun, the former railway minister, for her own companies, and also received kickbacks for helping others win lucrative government contracts, Beijing-based Century Weekly reported, citing an unnamed source.
Brokers like Ding usually charge a 3 percent commission for a multi-billion yuan contract, the source said.
Last July, China's top auditor found a large state-controlled company transferred around 100 million yuan to Ding's bank account, shortly after it won contracts for the Beijing-Shanghai High Speed Railway.
But the irregularity was not included in the auditing report due to influence from Liu and Ding, the source said.
The National Audit Office said the information has been transferred to the government's anti-corruption body and couldn't reveal further details, the magazine reported. The company name was also not given.
By acting as a liaison between Liu and several companies, Ding was said to have gained some 800 million yuan before she was taken away for investigation in January. The source said Liu told Ding to "set aside 400 million yuan of the kickbacks."
"Bidders for state-owned railway projects can't directly offer rebates to powerful officials. Therefore, they must find well-connected individuals or private companies to be middlemen for them," the source was quoted as saying. "This has been an unspoken rule that the industry followed for years."
A source involved in the investigation into Ding told the magazine it was well-known in the industry that she had a close relationship with Liu and was "always willing to do favors for others."
The report also said Ding introduced mistresses to Liu. Some of these women were said to be actresses from a popular television drama that Ding invested in.
The report added that Ding met Liu before he became minister of railways in 2003.
Ding Shumiao, 56, a major equipment supplier to the high-speed railway industry, allegedly bribed Liu Zhijun, the former railway minister, for her own companies, and also received kickbacks for helping others win lucrative government contracts, Beijing-based Century Weekly reported, citing an unnamed source.
Brokers like Ding usually charge a 3 percent commission for a multi-billion yuan contract, the source said.
Last July, China's top auditor found a large state-controlled company transferred around 100 million yuan to Ding's bank account, shortly after it won contracts for the Beijing-Shanghai High Speed Railway.
But the irregularity was not included in the auditing report due to influence from Liu and Ding, the source said.
The National Audit Office said the information has been transferred to the government's anti-corruption body and couldn't reveal further details, the magazine reported. The company name was also not given.
By acting as a liaison between Liu and several companies, Ding was said to have gained some 800 million yuan before she was taken away for investigation in January. The source said Liu told Ding to "set aside 400 million yuan of the kickbacks."
"Bidders for state-owned railway projects can't directly offer rebates to powerful officials. Therefore, they must find well-connected individuals or private companies to be middlemen for them," the source was quoted as saying. "This has been an unspoken rule that the industry followed for years."
A source involved in the investigation into Ding told the magazine it was well-known in the industry that she had a close relationship with Liu and was "always willing to do favors for others."
The report also said Ding introduced mistresses to Liu. Some of these women were said to be actresses from a popular television drama that Ding invested in.
The report added that Ding met Liu before he became minister of railways in 2003.
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