26th Sep 2009

Shanghai Environmental Protection Bureau Deputy Commissioner in bribery case with ERM (Shanghai)

Source: www.sina.com.cn; China Daily, Shanghai Daily
Links: http://www.chinadaily.com.cn/bizchina/2009-08/28/content_8629365.htm

Former Shanghai Environmental Protection Bureau Deputy Commissioner bribed million Chinese Dollars (Yuan)

Per this morning’s newspaper. Having worked in a distant province for 16 years, Mr. Shunjun YAN returned to Shanghai and had held various positions in the environmental protection Bureau (EPB) for more than 20 years. Within one year after his retirement, Mr. YAN’s name showed on the Shanghai Counter-Corruption Department’s suspect list of corrupt senior officials.

Yesterday morning, 63-year old YAN appeared in the intermediate People’s court, facing charges of being bribed for over one million Yuan. It is also confirmed that Mr. YAN suffers the late stage of liver cirrhosis therefore he has not been taken under custody.

YAN became the Deputy Commissioner of Shanghai Environmental Protection Bureau (EPB) in 1997 and had been a key decision maker and influencer in selecting environmental contractors till his retirement in April 2008. It is reported that all bribes are from the environmental industry. Seven parties were revealed in the indictment, and three out of the seven are subsidiaries or sub units of Shanghai EPB.

Case 1 - Prior to 2005, Shanghai Radiation Environment Surveillance Department was constantly criticized by YAN because of its work quality. Starting in January 2005, the Department “hired” YAN as a part-time consultant and had paid him “consulting fee” of 3,000 Yuan on a monthly basis. Since then, not only the criticism disappeared, the Department had also won several major contracts from Shanghai EPB. ¡¡¡¡

Case 2 - Environmental Resources Management (ERM) Shanghai Office Head is a long time acquaintance of YAN’s and is a former professor at East China Normal University. With YAN’s “help”, ERM Shanghai won several major contracts, and with became the first foreign owned company to receive a Class B and then Class A license to provide environmental assessment nationally. With this, ERM entered into several very profitable sectors such as mining and dredging, providing environmental assessment services. During the Hang Zhou Bay Environmental Assessment project, YAN arranged ERM to participate and receive a 1,300,000 Yuan contract. To payback the business arrangements, ERM Shanghai Office Head sent $20,000 US Dollars to YAN’s daughter who studied in the U.S. in 2005; and gave YAN 4,000 Euros as “pocket money” when YAN was on business travel in Germany.

Case 3 - Shanghai Tongji University construction science and technology Limited company was also on the bribery list. This company received major contracts including a 320,000 Yuan waste water treatment project. As a repayment, Mr. Kuang of this company paid YAN a total of 206,000 Yuan in three occasions.

Case 4 - China Science and Technology University's Professor Zhang had given YAN a total of 35,000 Yuan in cash and 5,000 YUAN gift certificates in four years, as a return of winning various projects.

It is reported that most of the large amount bribery is from private enterprises. The prosecutor accused YAN of receiving bribes for a grand total of 864,000 Yuan, 20,000 US dollars and 4000 euros. YAN confessed and returned the illegal money. Because of this, it is suggested that the court may use judgment to assign a penalty leniently. ¡¡¡¡During the entire hearing period, YAN did not raise any objection to the indictment. He acknowledged that he was worried about his income reduction after retirement and started to receive bribes as his retirement age was approaching.

YAN’s attorney defended that YAN was very cooperative during the investigation, returned the illegal money, and is in a poor health condition. Therefore, YAN’s attorney requested a lighter sentence from the court. A decision will be made in the near future.

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