Former Guangfa Bank Chairman Sentenced to Life for Bribery, Firearms Possession

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The Guangdong Supreme Court has upheld the life sentence issued to former chairman of Guangdong Development Bank (Guangfa) and former chairman of the Guangdong Provincial Financial Office Li Ruohong by the Shaoguan Middle Court last year for corruption and illegal firearms possession.

In November 2016 the Shaoguan Middle Court found that 62 year-old Heilongjiang-native Li used his official position to obtain kickbacks from the legal representative of a Chinese company for the provision project and property management contracts while Li was the vice-head, head and chairman of Guangfa Bank from 1998 to 2005.

Three of Li’s accomplices including two brothers and a mistress, also received sentences of 6 to 11 years imprisonment for their involvement in his crimes.

According to the court’s findings Li and his long-term Lu Xiaoling obtained 3.2 million yuan as well as a golf club membership worth 415,000 yuan from the legal representative Mr. Lin, in exchange for favourable treatment from the bank during the seven year period.

During the period from 1996 to 2000, while serving as vice-head of the Qingyuan branch of Guangfa Bank, Li also obtained a villa in situated from Yinhu Road in Shenzhen worth 5.16 million yuan courtesy of an investment company based in the same city.

Li’s corrupt activities frequently involved immediate family members. In 1998 he requested that a Mr. Wu from another Guangdong-based company provide his younger brother Li Ruobing with a house just prior to his marriage.

Wu obliged with the provision of funds to purchase two properties on Tianrong Road in Guangdong’s Tianhe district, as well as villa at an estate in Fanyu District.

The two properties on Tianhong Road were reportedly worth 500,000 yuan and 360,00 yuan, while the Fanyu District villa is worth 1.08 million yuan.

In 2005, while Guangfa Bank was preoccupied with the disposal of non-performing assets, Li obtained 8 – 10 million yuan from a property development company in Guangzhou, claiming that Li Ruobing had met with financial hardship.

In 2006 the same property company subsequently provided assistance to both Li Ruohong and Li Ruoxinwith the purchase of two properties worth 6.09 million yuan and 3.17 million yuan.

In May 2009, Li Ruohong also sought a further 5 million yuan from the aforementioned Mr. Lin to provide to his elder brother Li Ruoxin for the purposes of home loan repayments and share market speculation.

In addition to bribery, Li, his brothers and his mistress Lu Xiaolong were also found guilty of illegal firearms possession.

 

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