Home Asia-Pacific The Chinese bank chairman involved in corruption scandals accorded death sentence

The Chinese bank chairman involved in corruption scandals accorded death sentence

20
0
dav
Jian Xiyun, who headed Heng Feng bank, is said to have taken 60 million Yuan or roughly US$8.6 million as bribes and illegally allowed 3.7 billion Yuan in as credit. /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:”Calibri”,sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:”Times New Roman”; mso-bidi-theme-font:minor-bidi; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} He is also said to have destroyed records and accounts of about 660 million Yuan or US$94 million. A Chinese court sentenced the bank chairman to death for embezzlement of funds and corruption charges. However, he was given a chance to turn the sentence to life imprisonment if he behaves appropriately in jail for the next two years. According to Chinese law, Jiang can avoid a death sentence that will be converted to a life sentence if he commits no other crimes in the next two years. However, Jiang will not leave prison, with the court stating that he cannot be granted a reduction into the jail term The Yantai Intermediate people court, which is located in Shandong province, convicted Jiang Xiuan, who is a former Heng Feng bank official, of illegally destroying accounting vouchers, issuing financial notes, corruption, and receiving of bribes According to the court ruling, Jiang chaired Heng Feng bank from 2008 to 2013 and embezzled about the US $108 million of the bank shares. He took about $8.6 million in bribes, guaranteed the US $528 million illegally, and destroyed accounts and records which could sum up to about $94 million. According to various media houses, Heng Feng bank ended in 2019 is considered as one of the most popular bank failures in China. The bank is also said to have never published financial statements since 2016. At the beginning of the year, the bank received a state bailout amounting to $14 billion. The bank chairman stated that it was to issue 100 billion shares which are associated with a Chinese state fund and government-backed company via private placement. This process against the former bank chair shed some light on the bank’s operations under Jiang and Cai Guohua who is his successor. According to the South China Morning, post-Cai has been under investigation since 2017. He is thought to have taken bribes and misused funds; thus, he is also facing charges as well. Based on Caixin’s financial magazine, Gouhua attempted to use billions of funds to finance his expensive lifestyle where he would spend about 400,00 Yuan daily. The suspended death sentence issued to Jiang is not the first one. Yang Chenglin, who is a former chairman of inner Mongolia bank, was issued with the same sentence last year where it was verified that he took about 300 million Yuan as bribes Liu Jinbao, the former chief executive of Bank of China Hong Kong was also issued with a death sentence in 2005 together with the deputy Governor of China Development Wangi Yi who was also facing corruption charges as well. Many banking institutions are facing tough economic times, thus struggling to repay their debts and great pressure to attract more deposits.  China has been facing the slowest economic growth in about three decades; this has been associated with the weak banking system experienced by city commercial banks and rural banks. Governor Yi Gang stated that they will follow market-oriented and the rule of law in dealing with problematic banks.

LEAVE A REPLY

Please enter your comment!
Please enter your name here