Alleged gang boss denies bribing officials

By Wang Huazhong (China Daily)
Updated: 2009-10-29 08:18

Former deputy of the Chongqing People's Congress and alleged gang boss Li Qiang Wednesday defended himself in court, saying he did not pay government officials to gain favor or protection for his multi-million dollar businesses.

The public is closely watching the trial after Chongqing's massive sweep on 14 gangs, with special interest in how Li rose from a staff member in a university canteen to a politically powerful billionaire.

Three government officials, who are accused of accepting 675,000 yuan ($95,000) in bribes from Li, went on trial alongside him Wednesday.

They admitted to accepting cash or receiving business benefits from Li but denied allegations they had protected or helped legitimize Li's illegal bus operations or disregarded relevant public complaints, China News Service reported.

The trio are:

Xiao Qinglong, former director of the transport administration of Shapingba district, whom Li regarded as a "brother" and was accused of accepting 480,000 yuan. He is alleged to have facilitated Li in acquiring more than 100 buses with operational rights and favorably treating 17 of Li's buses that had run illegally for two years.

Jiang Hong, former director of road transport administration of Ba'nan district, to whom Li sold a taxi license with a 650,000-yuan discount. He is alleged to have allowed 33 of Li's buses to operate in areas under his jurisdiction for two years.

Jiang Chunyan, former chief of the second division of the Letter and Visits Office under the municipal Party committee, whose child called Li "godfather" and is accused of accepting 10,000 yuan. She is alleged to have helped Li when his companies sent appeals to the agency against "unlawful competition" from other bus and taxi companies.

Li said in court Wednesday that the three were not powerful enough to protect illegal operations or influence government decisions.

But according to the indictment, four of Li's transportation and real-estate companies were accused of having successfully reaped 57.1 million yuan in profit through illegal businesses, and evaded 60 million yuan in taxes.

The amount of allegedly ill-gotten gain is in stark contrast with the scale of Li's petite transport business, Yu Qiang, which in 2005 held only 4 percent of the market share.

"As the 2006 consolidation of bus companies was approaching following the city government's directives, I had to acquire passenger vehicles from nine companies in 2005 in order to survive," Li said in court.

The company then grew quickly, taking a leading position in 2008 with about 500 buses, which are notorious among locals for speeding and blocking traffic in order to compete for market share.

Li's success in the business arena has been accompanied by his amplified clout in politics as he was elected a deputy to the Chongqing People's Congress, a standing committee member of the Ba'nan District People's Political Consultative Conference, chairman of the Chongqing Business Association and council member of the China Road Transport Association.

On Monday, Li confessed in court that two of the nine charges - illegally operating a business and concealing account books - "were almost true".

Billionaire Li denied that he had offered bribes to the trio. Instead, he gave money to "help out old friends as close as brothers practicing the tradition of spring festival (giving money in red envelopes to his family)".

"Though Li says he gave away the money to help friends or as festival gifts, it still counts as bribery if he expected to gain from the officials," said Wang Xianli, a lawyer with Joinway Law firm.