CHINA

China issues stringent rules on donations to the healthcare sector

In a further bid to curb corruption in the medical sector, China’s National Health & Family Planning Commission (NHFPC) has issued revised rules governing the giving and receiving of donations, sponsorships and other benefits to “healthcare entities” in China.

The Provisional Rules on Receiving Donations for Public Welfare by Healthcare Entities 2015 (2015 Rules) apply with immediate effect and largely govern the procedure for acceptance, receipt and publication of donations by healthcare entities. Both domestic and foreign companies and individuals should take heed of the provisions when considering donations or gifts to any state-run hospital or public welfare organisation in China. The 2015 Rules contain a framework around which the provision of donations will be assessed.

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President of Dongfeng Motor under investigation

Fushou Zhu, the president of Dongfeng Motor Corporation, is being investigated by the Chinese Communist Party's Central Commission for Discipline Inspection (CCDI) for suspected "severe disciplinary violation". The state-owned Dongfeng Motor is one of the largest motor producers in China. It has partnerships with Nissan Motor of Japan and PSA Peugeot of France.

Chairman of China Southern Airline probed

Xianmin Si, the Chairman of China Southern Airline, is under investigation by the CCDI for suspected "severe disciplinary violation". The state-run China Southern Airline is one of the largest carriers in China. Since CCDI's inspection over China Southern Airline's operations last year, China Southern has removed several senior executives (including the former chief financial officer) who were under investigation for "job-related crime".

Senior Securities official under investigation

Gang Yao, the Vice Chairman of the China Securities Regulatory Commission (CSRC), is under investigation by the CCDI for suspected "severe disciplinary violation". Mr Yao has been with CSRC for more than 15 years.  Mr Yao has been in charge of the listing department of CSRC since 2002 and until April this year, which approves applications for IPOs in China.

China corruption fight extends to more government officials including senior officials in Beijing and Shanghai

Several more government or Communist Party officials have recently been investigated by China's anti-corruption authorities amid China's sweeping anti-corruption campaign, including top officials in Beijing and Shanghai – Baojun Ai, a vice mayor of Shanghai and Xiwen Lv and a senior party official in Beijing – being investigated by CCDI for suspected "severe disciplinary violation".  Benshun Zhou, a senior party official of Hebei Province, is under criminal investigation initiated by the Supreme People's Procuratorate for suspected bribe taking offence. Other officials recently under investigation by local commissions for discipline inspection for suspected "severe disciplinary violation" include Qing Li, the Head of Guangdong Province Environmental Protection Department; Dongliang Li, a vice mayor of Xiamen city; Sha Wu, a senior party official of Guangzhou city; and Kunxue Li, a senior party official of Chengdu city.

INDONESIA

Indonesia jails two in relation to Innospec bribery allegations

Indonesian authorities have jailed two individuals in relation to bribery offences. Suroso Atmomartoyo was found guilty at the District Court of Central Jakarta and sentenced to five years in prison and ordered to pay a fine of 200 million Indonesian Rupiah (£9,600). Atmomartoyo, a former director of state-owned petroleum refinery Pertamina was found guilty of receiving bribes from PT Soegih Interjaya, which acted for Innospec. The bribes were intended to secure, or serve as rewards for having secured, contracts from the Government of Indonesia for the supply of Innospec products. It was found that Atmomartoyo received $190,000 in bribes as well as hospitality benefits whilst on a visit to London. Willy Sebastien Lim, the former owner of PT Soegih Interjaya  who was accused of paying Atmomartoyo the bribes, was convicted and sentenced to three years in prison as well as being fined 50 million Indonesian Rupiah.

INDIA

Executives of US-based retailer Walmart under investigation by India's anti-corruption authority

Executives of Walmart including the company's Indian head were summoned and examined by the Central Vigilance Commission (CVC), the anti-corruption enforcement authority in India. Walmart allegedly gave "thousands of small bribes" to Indian officials in exchange for customs clearances and permits to set up stores in India.

SIT calls for greater vigilance on shell companies in black money hunt

India's Special Investigation Team (SIT) on 'black money', which monitors investigations dealing with funds earned on the black market, on which income and other taxes were not been paid ("black money"), has requested that Indian law enforcement agencies, including the tax department and the Enforcement Directorate employ greater vigilance when examining the operations of companies using the same address. According to SIT, shell companies which are used only for routing funds without undertaking real business activities have been used for money laundering purposes in various high-profile cases.

VIETNAM

Six SOE executives jailed for corruption in Japan-funded railway construction

Six Executives of a state-owned railway corporation have been convicted of corruption involving a Japan-funded railway project in Hanoi and sentenced to imprisonment up to 12 years by a court in Vietnam. These executives were convicted of "abusing power and authority while carrying out official duty" to force a Japanese consulting company to pay them VND11 billion (approximately $550,000) in bribes. This case followed the executives of the Japanese consultant admitting to Japanese prosecutors that they had paid kickbacks to government officials in Vietnam, Indonesia and Uzbekistan in exchange for consulting contracts.

THAILAND

Assembly Members call for anti-corruption reforms

Thailand National Reform Steering Assembly members are discussing work plans toward reform of the country including reform with respect to anti-corruption. Among others, Assembly members call for speedy verdicts and more severe punishments, and removal of the statutory limitations of corruption cases. Currently, there are no laws specifically protecting informants who report corrupt conduct; assembly members also suggest that related laws be reviewed and amended to address the protection.

SINGAPORE

Former Singapore Power technicians charged with corruption

Four ex-technicians of Singapore Power (SP), an energy utility company, were charged with accepting bribes from a construction firm.  They allegedly accepted bribes of between S$50 and S$450 from the employees of the construction firm for "not causing difficulties" for the construction firm during electrical board installation inspections. The case was reported by SP to the Corrupt Practices Investigation Bureau after it conducted an internal investigation following a complaint. 

PAKISTAN

Pakistan passes amendments to the Anti-Money Laundering Act

In November 2015, Pakistan passed a bill to amend its Anti-Money Laundering Act 2010. The amendments are aimed at bringing the existing Anti-Money law in line with international standards set out by the Financial Action Task Force.