- New law or regulation
- On March 18, 2014, the General Office of the Communist Party of China (“CPC”) Central Committee and the General Office of the State Council jointly issued the Opinions on Practicing Conservation of Food and Combating Waste of Food (the “Opinions”), which target food excesses in the official activities of the Party, government agencies, and state-owned enterprises. The Opinions encourage simple and healthy meals and prohibit extravagant meals. All Party and government agencies as well as state-owned enterprises are required to include meal expenses in their “Three Public Expenditures,” and any significant catering expenses might be subject to spot-checks by departments of supervision.
Local level (Beijing & Shanghai): No developments.
Communist Party Rules: No developments.
- Upcoming law or regulation
- Government Action
- It was reported on March 3, 2014 that Du Bidong (“Du”), the former Inspector of Transportation Department of Shanxi Province, was sentenced by the Intermediate People’s Court of Xi’an City, Shanxi Province to 15 years in prison for taking bribes.
Du was found guilty of soliciting and accepting bribes during his term in office from September 2008 to February 2012, and such bribes were determined to amount to RMB 4.51 million (USD 725,992) from various construction enterprises, construction supervision companies and equipment suppliers by taking advantage of his position. Du was given a light sentence because he confessed his crimes and returned the illegal gains.
- The official website of the Central Commission for Discipline Inspection (“CCDI”) of the CPC on March 7, 2014 reported that Chen Baihuai (“Chen”), the former Deputy Chairman of Chinese People’s Political Consultative Committee (“CPPCC”) of Hubei Province, was being placed under investigation for abuse of power and taking bribes. Later, on March 9, 2014, CCDI announced on its official website that Shen Peiping (“Shen”), the Deputy Governor of Yunnan Province was under investigation for serious violation of Party discipline. Subsequently, on March 22, 2014, the CCDI announced again that Yao Mugen (“Yao”), the former Deputy Governor of Jiangxi Province, was under investigation for suspected violation of Party discipline. These three announcements did not disclose any details of the alleged violations, but it was noteworthy that the three are provincial and ministerial-level officials. More details are expected to emerge over the coming months.
- On March 19, 2014, Dai Xingnong (“Dai”), the former Deputy Chairman of CPPCC of Gangzha District, Nantong City, Jiangsu Province, was sentenced to 10 years and 6 months in prison by the Intermediate People’s Court of Nantong City for embezzlement and accepting bribes.
Dai allegedly embezzled public funds totaling RMB 229,901 (USD 37,008) by taking advantage of his position from 2011 to 2013. Dai was also found guilty of accepting bribes amounting to RMB 787,717 (USD 130,000) from 10 individuals. Dai was given a reduced sentence because he confessed his crimes.
- On March 19, 2014, Ma Guoqiang (“Ma”), the former Deputy Secretary of Zhoukou Depot of China Grain Reserves Corporation (“SinoGrain”), was sentenced to 15 years’ imprisonment by the Intermediate People’s Court of Anyang City in his second trial for embezzlement and taking bribes.
Ma was accused of taking advantage of his position during his term as Deputy Chief of Xuchang Depot of SinoGrain to embezzle public funds totaling RMB 181,760 (USD 29,198) and accept bribes amounting to RMB 484,000 (USD 777,52). Ma was sentenced to 15 years in prison in his first trial on November 11, 2013 by the People’s Court of Wenfeng District, Anyang City, and this judgment was affirmed by the Intermediate People’s Court of Anyang City after which Ma filed an appeal.
5. China-related FCPA Action