Ｚｈａｎｇ Ｋｅｍｉｎｇ Ｄｉｓｔｒｉｃｔ Ｃｈｉｅｆ ｉｎ Ｓｈａｎｇｈａｉ Ｊａｉｌｅｄ ｆｏｒ Ｔａｋｉｎｇ Ｂｒｉｂｅｓ等

Zhang Keming District Chief in Shanghai Jailed for Taking Bribes

A former district chief was sentenced on March 19 to 13 years in prison for taking bribes of 1.87 million yuan (USD 274,000).

Zhang Keming, 65, former vice-director of Putuo District in Shanghai, illegally traded property and land, abused tax policies and took bribes four times, according to Shanghai No.2 intermediate people court.

Zhang, who was quiet during the hearing, was escorted from the courtroom without appeal. His attorney had earlier declined comment.

In 2002, following a request from Liu Baogen, a former shareholder of Holiday Inn Shanghai Vista, Zhang helped the hotel extend its compound beyond what had been approved. Then, after Liu left the hotel, Zhang helped him in bidding for a project and received 350,000 yuan (USD 51 thousand) from him.

Zhang and Liu made money from a property deal with a Tianjin-based automobile trading company. When the company ended its business in Shanghai, the two bought a property from the company for a low price and sold it later for more. Zhang got 500,000 yuan (USD73.2thousand) from the deal.

Zhang also received 1 million yuan from Shanghai Shatian Property Development Company and 20,000 yuan (USD2.9thousand) from Shanghai Xinchangzheng Group, the developer of a large shopping and office complex, after he helped the company evade taxes.

An investigation in 2007 into Wang Miaoxing, former chairman of State-owned Shanghai Xinchangzheng Group, led to the discovery of Zhangs crimes.

Zhang was detained in April 2008.

Liu Yonghao

Returned to China Minsheng Bank

as Vice Chairman

In the board meeting of China Minsheng Bank (CMB) on March 23, New Hope Investment Co., Ltds board chairman Liu Yonghao returned as the vice chairman of this bank after he left 3 years ago.

New Hope Investment Co., Ltd is the largest shareholder of CMB. The data shows that this company holds 6.21% of the shares of CMB.

Liu Yonghao has been selected as the vice chairman of this bank for three times. But in July 2006 he failed in the selection. Therefore, in the past 3 years, there was only one board member in the directorate of CMB from New Hope Investment Co., Ltd, which was taken by the companys vice president Wang Hang.

CMB, founded in Beijing in January, 1996, is the first national joint-stock commercial bank primarily held by non-public-owned enterprises, also a standard joint-stock financial enterprise founded strictly according to the Company Law and the Commercial Bank Law. On December 19, 2000, A shares of CMB (600016) were listed at Shanghai Stock Exchange.

Ma Jianping

Former Fund Manager Was under Investigation

Prosecutors have launched an investigation into former investment manager Ma Jianping, who served as general manager of Aijian Trust Investment before the Shanghai-based firm crashed in a financial scandal four years ago.

A March 17 statement released by the brokers parent firm, Aijian Co., did not name Ma but acknowledged that investigators were targeting a former manager or managers at subsidiary Aijian Trust. Then a source identified the target as Ma.

Ma Jianping was one of the first MBAs in China. He once served as the Party Secretary of shanghai Nanshi Branch, Agricultural Bank of China, Vice General Manager of Shanghai Business Investment Corporation. In 1998 he took over Aijian Trust Investment as its General Manager.

During his tenure, he allowed Zhang Yang who used to be ranked at No.76 in the Forbes Rich List to make use of the trusted fund of Aijian Trust to collaborate with the Aijians board chairman Liu Shunxin on speculations in stocks through Aijian Trust. Another rich man was accused of signing an unfair agreement with a Shanghai-based company by using the capital of Aijian Trust.

Those two cases caused about 6-billio-yuan loss for Aijian Trust. Ma Jianping was removed from his post in September 2004. But he went to Australia to “visit his families” and the investigation into his case ended without being settled.

The restart of the investigation was related with Aijians new restructuring plan based on a 588 million yuan (USD 86.1 million) takeover bid by Thailands Chia Tai Group since February. Previously, Bank of East Asia also showed interest in acquiring Aijian Co.

Zhu Jianghong

Grees Board Chairman

Was Paid 40 Million Yuan in 2008

After Ping An Insurance Co., Ltds board chairman Ma Mingzhe gave up his annual salary in 2008, the state-backed Gree Electric Appliances Inc.s Zhu Jianghong became the new highest paid enterprise executive in China. His income in 2008 was 40 million yuan (USD 5.9 million). Grees president Dong Mingzhu had the income with 120 thousand yuan (USD 17.6 thousand) less than Zhus.

On March 20, 343 million restricted shares of gree were allowed to enter the market, of which 16.04 million restricted shares were held by the stock-based incentive objects in 2007. This was the third time that Gree implemented stock-based incentive plan since July 2006. After the three times of stock-based incentive plan, Zhu Jianghong has the personal assets of 170 million yuan (USD 24.9 million).

At this time when the financial crisis was sweeping the whole world, the enterprises are busy decreasing their executives salaries and even cutting jobs, such a high salary that Zhu received was undoubtedly under queries from many sides. At the end of 2008, the government issued regulations, saying that the return on common shareholders equity shall not exceed 40% of the total salary. Apparently, Zhu Jianghong and Gree violated the regulations.