File Picture: ecnsphoto
On September 22, former property mogul Ren Zhiqiang was sentenced to 18 a long time and fined 4.2 million yuan ($620,000) for corruption, taking bribes, embezzlement of general public cash, and abusing his power all through the time as he served at a condition-owned enterprise.
How did Ren end up committing such serious crimes involving extra than 200 million yuan as head of the Huayuan Group around a interval of pretty much two a long time?
In accordance to a statement posted by the Beijing No.2 Intermediate People’s Court, concerning 2003 and 2017, Ren took benefit of his situation to embezzle additional than 110 million yuan in public cash, took bribes totaling more than 1.25 million yuan, abused his power and caused especially heavy losses of more than 100 million yuan to a point out-owned holding organization. Ren did not appeal his sentence.
Illegally amassing wealth with his son
Born in 1951, Ren was appointed normal manager of the condition-owned firm Beijing Huayuan Group Co., Ltd. in 1993 in advance of remaining promoted to chairman of the corporation. He was also the chairman of Huayuan Real Estate Business, a stated organization below Huayuan Team, and Beijing Huayuan Serious Estate Company Co., Ltd., a wholly-owned subsidiary of Huayuan Authentic Estate Organization. Acquiring been the “top leader” in Huayuan Group for approximately 20 many years, Ren experienced absolute dominant electrical power, which laid the foundation for his wanton corruption.
The courtroom located that Ren had embezzled far more than 49.74 million yuan in community money, of which 36.4 million yuan was a “financial consultant’s price” compensated to his son.
Between August 2012 and January 2013 when implementing for financial loans from a believe in firm, Ren took gain of his placement as chairman of Huayuan Actual Estate Organization and chairman of Beijing Huayuan True Estate Agency Co. to collude with his son and the then fiscal director of Beijing Huayuan Actual Estate Company Co. surnamed Jiao to pay his son a assistance rate of 23.4 million yuan even although his son did not offer providers as an agent.
Later on, his son and Jiao signed a untrue “economic advisory company settlement” involving Huayuan Group and a Beijing consulting assistance corporation to illegally possess the assistance costs.
In 2014, because of to the decline in interest rates on the mortgage, Beijing Huayuan Genuine Estate Agency Co. renewed a loan for 1.3 billion yuan from Kunlun Belief Enterprise. Soon after studying of this, his son took gain of Ren’s placement to check with for one more “agent service charge.” To aid his son gain the charges, Ren signed a faux metal bar provide contract well worth 13 million yuan and paid out the funds to his son.
Jiao reported when she documented the transgression to Ren, she obviously explained to him that there was no precedent for the corporation to pay out assistance fees, and that the revenue really should not be presented to his son. But Ren even now agreed to fork out.
The courtroom dominated that Ren had fully commited the criminal offense of corruption.
In addition to illegally possessing a big amount of public funds with his son and some others, soon after retiring Ren gained 13.34 million yuan more than the limit of his income all through his tenure with the enterprise, which also constituted the criminal offense of corruption.
In Might 2008, Beijing’s Xicheng district established restrictions to the salaries of administrators of point out-owned and state-keeping enterprises.
Pocketing firm profits as his very own
The court identified that Ren dedicated four crimes, and embezzlement was dedicated at the earliest time.
In September 2002, for the duration of shareholding reforms of Huayuan Actual Estate Corporation, Huayuan Team and staff members of its affiliated corporation jointly invested and set up Beijing Huayuan Haoli Financial investment and Management Center, through which staff members could hold inventory in Beijing Huayuan Real Estate Company Co. As a shareholding system for staff members, the division of the State-owned Assets Supervision and Administration Fee (SASAC) in Beijing’s Xicheng district clearly claimed that Haoli centre could not have interaction in other working and investing functions, nor borrow or financial loan money to Huayuan Team, Huayuan Authentic Estate Business or other corporations.
Even though Ren obviously understood people guidelines, he overlooked them multiple times. In August 2003, with other partners, Ren borrowed on behalf of Haoli centre, 11.2 million yuan from Huayuan Yingdu Genuine Estate Progress Co. Ltd. to enable the heart to commit in an apartment challenge beneath Huayuan. Haoli pocketed about 92 million yuan from the job, from which Ren obtained gains of 19.24 million, and held 15.39 million yuan following tax.
In September 2003, Ren embezzled 30 million yuan from Haoli to acquire inventory owned by Huayuan in Haoli for himself and other team. This created Haoli a area the place Ren used Huayuan Authentic Estate to distribute dividends successively about individuals 30 million yuan.
In September 2013, Ren made a decision to lend 20 million yuan to Beijing Huayuan Haoli Financial investment Co., Ltd. (formerly regarded as Haoli Center) to commit in real estate tasks, earning a revenue of 500,000 yuan. Ren attained a revenue of about 100,000 yuan, or 80,000 yuan right after tax.
Ren embezzled public resources 3 moments totaling 61.2 million yuan and these types of behavior constituted the crime of embezzlement, the court document said.
The court docket also observed that Ren violated polices and abused the electricity, which led to losses of about 117 million yuan in the condition-owned business. These crimes netted Ren income of about 19.4 million yuan.
Extorting decoration costs from suppliers
Huayuan Group cooperated with many products suppliers, which includes a person managed by an personal surnamed Zhao.
From 2004 to 2014, Ren provided some ease to Zhao’s organization on gear source, and gained a payment for housing decorations worthy of a lot more than 1.25 million yuan from Zhao.
The home was positioned in Beijing’s Taiyanggong place, and the renovating do the job lasted various decades. Ren’s wife mentioned each individual time the decoration firm procured a batch of products, she would inform Ren who then requested Zhao for payment.
There were five payments to Ren, according to accounting by Zhao’s business. Zhao’s secretary stated that the firm started furnishing devices to Huayuan in 2000. To sustain a prolonged-time period partnership, Zhao offered Ren’s property decoration expenses.
Ren experienced been expelled from the Communist Party of China and had his unlawful gains confiscated, according to a district willpower watchdog in Beijing on July 23. Born in Yexian county in East China’s Shandong Province, he joined the army in December 1969 and served in the armed service till October 1981, according to his resume. He joined the Communist Celebration of China in April 1974.