Typical Cases

2023/06/29

Chengdu Municipal Commission for Discipline Inspection and Supervision reported 5 typical cases of leading cadres engaging in business operations in violation of regulations

To persistently address the visible and tangible corruption and work style issues around the masses, strictly investigate and deal with problems such as leading cadres abusing power for personal gain and engaging in business activities in violation of regulations, continuously optimize the political ecology, and safeguard high-quality development, recently, the Chengdu Municipal Commission for Discipline Inspection and Supervision reported five typical cases of leading cadres violating regulations by engaging in business activities.

1. Lan Chengzhang, former Deputy Secretary-General of the Chengdu Municipal Government and former member of the Party Leadership Group of the General Office, violated regulations by engaging in business activities.   Engaging in business activities and abusing his authority to manipulate bidding matters. In 2005, Lan Chengzhang, then Director of the Chengdu City Appearance Bureau, wholly established a certain Chengdu cleaning service company.   He arranged for the company to win the city's taxi seat cover cleaning business through competitive selection. By the time the company ceased operations in 2013, it had earned more than 6 million yuan in profits. Lan Chengzhang also had other serious disciplinary and legal violations. In August 2022, Lan was expelled from the Party and had his benefits revoked; his suspected criminal issues were transferred to the procuratorate for legal review and prosecution.

  2. Shi Yaxin, former Chief Engineer of Chengdu Rail Transit Group Co., Ltd., violated regulations by engaging in business activities and abused his authority to seek benefits for the company. In 2014, Shi Yaxin invested 175,000 yuan in the name of his wife to jointly establish a certain Chengdu machinery equipment leasing company with others, and arranged for the company to undertake the machinery equipment leasing business for a section of Chengdu Metro Line 7. Shi Yaxin also had other serious legal violations. In October 2022, Shi was dismissed from public office; in December 2022, Shi was sentenced to ten years and three months in prison and fined 900,000 yuan for bribery.

3. Zhao Jian, former Deputy General Manager of Chengdu Urban Construction Investment Management Group Co., Ltd., long-term illegally invested in enterprises and obtained profit shares. In 2010, Zhao Jian, then Director of the Budget Management Office of Chengdu Main Road Construction Command, invested 5 million yuan to acquire a 10.85% stake in a certain agricultural investment company in Ya'an City to carry out land consolidation projects, and received 1 million yuan in profit shares by 2021. Zhao Jian also had other serious disciplinary and legal violations. In September 2022, Zhao was expelled from the Party and dismissed from public office; his suspected criminal issues were transferred to the procuratorate for legal review and prosecution.

4. Zhou Deguang, former researcher of Chengdu Finance Bureau, violated regulations by engaging in business activities and failed to rectify after being discovered by the organization. In May 2016, the retired Zhou Deguang established a wholly-owned Sichuan construction labor service company without organizational approval. During the company's operation, Zhou used the sale of company shares to defraud others of large amounts of property, suspected of contract fraud. In February 2018 and May 2019, the Municipal Finance Bureau verified Zhou's illegal business activities twice. Zhou promised in writing to withdraw shares and dissolve the company, but still held shares at the time of the case and failed to report to the organization that he was under police bail for suspected contract fraud. In December 2021, Zhou was expelled from the Party and had his benefits revoked; in September 2020, Zhou was sentenced to fourteen years in prison and fined 500,000 yuan for contract fraud.

5. Ma Li, former Deputy Secretary of the Party Working Committee of Zhonghe Street, Chengdu High-tech Zone, profited from selling goods to management service objects and partnered with them in business. From 2018 to 2021, Ma Li illegally engaged in wine agency business, selling wine to management service objects to earn price differences. In 2019, Ma invested 300,000 yuan to jointly operate gas station and recyclable construction waste processing businesses with several management service objects, earning 600,000 yuan in dividends by 2021, with over 400,000 yuan in profits yet to be settled. Ma Li also had other serious disciplinary and legal violations. In January 2022, Ma was expelled from the Party and dismissed from public office; in April 2022, Ma was sentenced to five years in prison and fined 400,000 yuan for bribery.

The "Notice" pointed out, The above five typical cases expose that a few leading cadres have weak awareness of integrity and self-discipline, wanting both to be officials and to get rich, benefiting from both public and private interests. Leading cadres engaging in business activities in violation of regulations not only deviate from the original mission of Communists, disrupt normal market order, and damage the business environment, but also foster unhealthy tendencies of "everything is about money" and the decadent value of "money above all," leading to corruption issues such as interest transfer and power rent-seeking, causing degeneration from minor misconduct to corruption. All party members, cadres, and public officials in the city should deeply learn lessons, draw inferences from one case to another, consciously strengthen ideals and beliefs, establish correct values, cultivate clean family traditions, and be self-alert, self-reflective, and prevent minor problems from becoming serious.

The "Notice" requires, All party organizations at all levels in the city should thoroughly study and implement General Secretary Xi Jinping's important statements on persistently advancing comprehensive and strict governance of the Party and related policy provisions, strictly fulfill the main responsibility for comprehensive and strict Party governance, strictly manage, educate, and supervise cadres, especially strengthen supervision over leading cadres' violations such as engaging in business activities and taking part-time remunerated jobs, to detect, remind, and stop early, preventing integrity risks from the source.  

All discipline inspection and supervision agencies (institutions) at all levels in the city should base on their functions and responsibilities, always maintain a high-pressure stance against corruption, strengthen case handling guidance, and for those who are involved in illegal business activities, part-time remunerated jobs, harboring illusions, concealing and not reporting, falsifying or reporting untruthfully, or not stopping, not knowing when to stop, and evading organizational supervision, investigate and deal with each case found, hold accountable, and continuously send a strong signal that discipline enforcement will become stricter over time. The "three promotions" through cases should be deepened, Coordinate well the "second half of the article" to promote the continuous improvement of the city's political ecology.