4-6 The Corrupted Fighting Corruption

Four: Villain Holding Sway
6: The Corrupted Fighting Corruption




Under Jiang Zemin’s reign, corruption in the bureaucracy reached unprecedented levels. The irony is that, corrupted officials have been among the most vocal in China’s fight against corruption. The Yuan Hua case has a long history behind it.



The main culprit was the board chairman of the Yuan Hua Group, Lai Changxing. Lai founded the group in 1994, and was since engaged in the practice of smuggling for 5 years.
The value of goods smuggled by the group totaled 53 billion yuans, with duty fees invaded amounting 30 billion yuans.
This resulted in a loss of 83 billion yuans in revenue for the state. At the time, the Yuan Hua case was regarded as the largest incident of smuggling to have taken place since the CCP came to power in 1949.



During the investigations, over 6 hundred persons were probed, with nearly 300 being prosecuted in the end for criminal liabilities. In 2001, courts at several levels issued a total..