Alleged crime boss stands trial

By Wang Huazhong (China Daily)
Updated: 2009-10-27 08:18

CHONGQING: A local political bigwig and billionaire stood trial yesterday on charges of leading a mafia-style gang in China's largest municipality by area.

Li Qiang, 51, who owns about 20 companies, was politically powerful as a deputy to the Chongqing People's Congress, a standing committee member of Ba'nan District People's Political Consultative Conference, chairman of Chongqing Business Association and council member of China Road Transport Association.

But yesterday, the former politician, with white hair and glasses, and wearing an orange inmate's vest, faced nine charges including organizing and leading a gang, assembling crowds to disrupt public transportation and social order, provoking fights, forging account books, offering bribes, evading taxes and illegally operating businesses.

Li was one of the 24 alleged ringleaders to face trial after a massive crackdown on gangs in mountainous Chongqing.

Four of Li's transportation and real-estate companies reaped 57.1 million yuan ($8.4 million) in profit through illegal businesses, and evaded 60 million yuan in taxes, according to the indictment.

Altogether 20 people, including Li's wife, Wu Shuqin, and Li's brother-in-law, He Yonghong, a former deputy to the Ba'nan district People's Congress and a member of the district's political consultative conference, were accused of gang crimes.

Another seven people, though cleared of having joined the gang, were charged with disrupting transportation, provoking fights or forging account books.

Li had denied organizing and leading the gang, saying "I was not aware of the facts on the indictment or I was only informed by subordinates after the alleged facts occurred".

The trial will last five days, according to officials at the Chongqing No 5 Intermediate Court.

Prosecutors said Li recruited members and built his gang since 2000 to dominate certain districts, exploit and coerce ordinary people by practicing violence, organize fights and plan mass incidents in the city's Shapingba, Jiulongpo and Ba'nan districts.

The gang was managed by business models and had formed a comparatively complete structure, according to the indictment.

Li and key members Lai Yougang and Li Deming employed several hatchet men, who carried out violent acts on their orders, the indictment said.

The gang controlled local public transport markets by blocking and smashing competitors' vehicles and provoking fights. It also manipulated strikes to gain interest from the government.

Prosecutors said one story backing up that allegation was during last November's taxi strike. On its eve, Li assigned He Yonghong to talk to managers of taxi companies and asked them to warn drivers to stop operation or face the chances of having their cabs pelted with bricks and stones. When the strike happened on Nov 3, some gangsters carried out the threats.

"I did not dare to work after that. People were throwing bricks at taxis in the street. Gangsters were also flagging down cabs and, if one stopped, the drivers were dragged out and severely beaten," said a taxi driver in his 30s who asked to remain anonymous.

Before Li was arrested in July, he had grabbed the operation rights of 100 bus routes and 280 taxis covering 11 districts and counties in Chongqing, according to the local Chongqing Evening News.

Yesterday, dozens of taxi drivers, bus drivers and vehicle owners who were affiliated to Li's companies waited anxiously outside the court, fearing that Li's fall would kill their small businesses.

Owners of about 180 cabs who used to operate with small private companies joined Li's taxi company after the government called to consolidate the industry.

Drivers and owners of all 280 cabs, and of 500 buses affiliated or belonging to Li's Yuqiang Group, may not survive if the quota for cabs or routes for buses owned by the company is cancelled by the government or handed over to other companies that would levy higher management fees, some of them said.

"We borrowed money from relatives and friends to buy cars and pay for license fees (about 20,000 yuan per year) to operate. About 1,000 families with their hearts in their throats are watching for an acceptable outcome out of the trial," said a man surnamed Yu who was watching the trial.