CHINA

CHINA'S ANTI-CORRUPTION REGIME WILL PENALISE OFFICIALS "WITHOUT MERCY"

According to a government work report announced by Premier Li Keqiang on 5 March 2014, the Chinese government aims to establish an anti-corruption regime and will penalize corrupted officials "without mercy".  In the report, Li asked all levels of government to be economical in 2014 by eliminating waste and controlling spending.   

OFFICIAL IN THE CHINESE PLA CHARGED WITH BRIBERY

A high-ranking official of the People's Liberation Army was charged with corruption on 30 March 2014. Lieutenant General Gu Junshan, a former deputy chief of the logistics department of PLA, was charged with embezzlement, bribery, misuse of state funds and abuse of power.  Gu has been under investigation for two years since he was removed from office and detained in early 2012.   

DEPUTY GOVERNOR OF THE CHINESE PROVINCE OF JIANGXI UNDER INVESTIGATION

A deputy governor of Jiangxi province, Yao Mugen, is being investigated by the Central Commission for Discipline Inspection for serious violations of party discipline and state law. He is the latest of a series of senior provincial officials to have been placed under investigation in the last few months.   

CHAIRMAN AND SHAREHOLDER OF WISON ENGINEERING ARRESTED FOR BRIBERY IN CHINA

Hua Bangsong, a major shareholder and chairman of Wison Engineering, has been arrested amid allegations of bribery. Wison Engineering Services Co., a Hong Kong-listed company, is an important supplier of several Chinese state-owned oil and gas companies (including China National Petroleum).  The Chinese authorities have recently been targeting the oil industry as part of President Xi Jinping's anti-corruption campaign.   

CHINESE EXECUTIVE OF STATE-OWNED LOGISTICS COMPANY SENTENCED TO FIVE YEARS FOR BRIBERY

A Chinese executive has been sentenced to five years in prison (and fined approximately US$3,000) for taking US$21,335 in bribes in return for allowing another company to receive shipments under the state-owned enterprise's name.  By doing this, the other company was able to take advantage of the preferential treatment enjoyed by the state-owned enterprise in order to save money.  On 5 July 2013, the executive handed himself in to the prosecutor's office and surrendered all of the bribe money.   

INDONESIA

FORMER INDONESIAN GOVERNOR SENTENCED TO 14 YEARS IMPRISONMENT

The former governor of Indonesia’s Riau province, Rusli Zainal, has been sentenced to 14 years in prison and ordered to pay nearly US$ 90,000 in fines by Indonesia's anti-corruption court.  Rusli was found guilty of illegally issuing logging permits and receiving bribes in relation to construction projects.  He issued the permits to the subsidiaries of two large pulp and paper companies who profited from the timber yields.  Rusli also received kickbacks from a state-owned construction firm that won contracts to build facilities for the National Games (which was held in Riau) and funnelled bribes up to national and provincial lawmakers in relation to the Games.   

INDIA

INDIA LAUNCHES AN INVESTIGATION INTO ROLLS ROYCE

An anti-corruption investigation has reputedly been launched by India's defence ministry against Rolls-Royce. Rolls-Royce is suspected of paying kickbacks to several officials in relation to a US$1.6 billion engine supply deal with state-run Hindustan Aeronautics Ltd between 2007 and 2011. A related investigation by the UK Serious Fraud Office has been underway for some time.  In addition, Rolls Royce allegedly used an intermediary to negotiate and win the contracts; however, the use of an intermediary in government deals is reportedly prohibited by Indian law.   

VIETNAM  

VIETNAMESE MINISTRY OF TRANSPORT LAUNCHES INVESTIGATION RELATING TO RAILWAY PROJECTS

The Vietnamese Ministry of Transport has decided to launch an investigation into several railway projects awarded to Japan Transportation Consultants Inc. (JTC).  The investigation was started when it was reported in a Japanese newspaper that JTC admitted it paid US$780,000 to win a US$41 million railway project in Vietnam.  Four senior railway officials have also been suspended as part of the investigation and the Ministry of Transport has asked JTC to identify the Vietnamese officials who allegedly received the bribes.   

PHILIPPINES

PROSECUTORS IN THE PHILIPPINES WILL FILE CORRUPTION CHARGES AGAINST THREE SENATORS

After a six month investigation, prosecutors will reputedly file corruption charges against three senators for misuse of congressional funds. It is alleged that these senators took advantage of their official position in order to divert congressional allocations to ghost projects in return for kickbacks. They face life imprisonment and forfeiture of assets.

PAPUA NEW GUINEA

EX-MINISTER SENTENCED TO NINE YEARS IN JAIL WITH HARD LABOUR

Papua New Guinea's courts handed down the nine-year sentence to Paul Tiensten with the judge indicating that the judiciary wants to revise the legal guide for punishments for corruption. The judge stated that the statutory maximum of 10 years' in jail for stealing public funds was inadequate for much larger sums. Tiensten, who was the National Planning Minister, was found guilty of stealing public funds worth US$4 million.