By intern reporter Deng Hai

A complex web of land interests, shady deals and bribery began to surface in Chongqing last year, leading to charges against more than 30 government officials and well-known developers.

Now, as investigations and hearings climax with a second round of trials in a local courtroom, the web’s scope has expanded. New details have emerged about conflicts of interest tied to property developers, contractors and the government.

A developer and admitted briber who turned police informer shed the first light on the Chongqing corruption case in July 2007. Gong Shiying reported to the Communist Party’s Central Commission for Discipline Inspection that Wang Zheng, then-deputy mayor of the city’s Yuzhong District, had accepted his bribe but failed to provide the requested help.

The tip led to the detentions of Wang Zheng, then-secretary of the discipline commission Zheng Wei, as well as Shapingba District’s then-deputy mayor, Chen Ming. Both were placed under the party’s “double regulation” system. On December 29, 2007, the No. 5 Intermediate People’s Court of Chongqing gave Wang a death sentence with a two-year suspension, while Zheng and Chen received 13-year and 10-year jail terms, respectively.

But that case was just the tip of the iceberg. These ex-officials and others linked to the bribery network led investigators to other officials now pleading for the court’s mercy. Among them are Huang Yun, former mayor of the Shapingba District; Liang Xiaoqi, former deputy director of the Chongqing Urban Planning Department; Jiang Yong, ex-director of the Chongqing Planning Department; and Wang Bin, former chairman of the Chongqing Land Properties Group as well as former deputy director of the Chongqing Land and Natural Resources and Housing Administration.

Huang Yun, Wang Bin and Liang Xiaoqi went on trial in September. Next in line for court hearings are Jiang Yong, and a former director of the Chongqing Economic Development Zone Management Committee, Tang Wenfeng.

Interwoven Relations

Complicated as a cobweb, the land corruption case in Chongqing involves a spider’s nest of interrelated officials. And while facing court appearances and potentially heavy sentences, several defendants revealed additional information about the extent of corruption.

Wang Zheng, Zheng Wei and Chen Ming were not only office colleagues, but regularly spent free time together. Huang Yun, Liang Xiaoqi, Jiang Yong and several others are former schoolmates who graduated from the Chongqing Institute of Architecture and Engineering.

The court learned Huang Yun’s first bribe came from a schoolmate. Later, he introduced developers willing to pay bribes to Jiang Yong and Liang Xiaoqi.

For example, Liang Xiaoqi testified that he and Jiang Yong were introduced by Huang Yun in January 2005 to Lin Jinqing, chairman of Chongqing Fuzhou Real Estate Ltd. Lin Jinqing later won their support for adjustments to the planning and floor area ratio of his company’s Fuzhou New City development project. Wang Bin admitted many land developers were introduced to him by officials including Wang Zheng.

A cycle of crime developed. Officials accepted illicit gifts and used their positions to help bribers. The bribers then offered additional rewards for more help. Eventually, an assembly line of corruption affected virtually all aspects of land development, including land management and expropriation, clearing, warrants and planning.

Most officials played the game. Bribe-takers usually instructed subordinates to carry out tasks sought by bribers. Others handled the jobs alone.

As investigators closed in last year, the players reacted in different ways. Some suffered health problems, while others resorted to bizarre behavior.

Huang Yun’s doctor told Caijing that, six months before the case went to trial, his health began to deteriorate. He suffered from insomnia, mental problems and excessive weight loss.

Meanwhile, Wang Bin’s list of health problems expanded from high blood pressure and respiratory trouble to include mental distress. His lawyer told the court he developed chronic anxiety and insomnia. But his condition worked in favor of investigators, who found Wang Bin a talkative source of information about bribery.

However, Liang Xiaoqi behaved differently. According to a prosecutor, his bribe-taking grew exponentially after Wang Zheng and others were detained. Half the bribes he took were accepted in the first half of 2008, totaling more than 7 million yuan, including the largest single take of the 88 uncovered by authorities – a 6.8 million yuan bribe.

Developer Involvement

A lawyer familiar with the cases told Caijing that many developers “consciously accumulated” materials from corrupt officials, while including bribery as an everyday part of their business.

Loncin House, a well-known developer in Chongqing, and Fuzhou Real Estate from Shanghai’s Pudong area were among those involved. The names of these firms surfaced after Huang Yun and Jiang Yong were detained.

Another example is Chongqing Xuqing Real Estate Ltd. To facilitate its International Huadu Bay project, company representative Gong Shiying bribed Wang Zheng to get a 16 million yuan reduction in city fees, prosecutors say. She also gave Liang Xiaoqi some 2.25 million yuan and US$ 60,000 in exchange for adjustments to the planning and floor area – changes worth more than 100 million yuan, according to a professional estimate.

Who’s to Blame?

Sorting out the responsibility of officials in various government departments has proved a challenge for the courts. It’s also prompted some scholars to question the sustainability of China’s management system for urban development.

At Wang Bin’s trial, a heated debate ensued after the accused argued that, while admitting to accepting bribes, the dominant players and the biggest winners of the corruption were officials for district governments and the Chongqing Development and Reform Commission. He said he merely followed instructions from city and district government officials.

Accused of lowering the land grant fee standard to save 170 million yuan for Chongqing Fuzhou Real Estate’s Fuzhou New City, Wang Bin said the deal had been approved at an executive meeting of the district government.

Wang Bin’s self-justification underscores the role of state-owned investment groups in the development of many cities in China.

Wang Bin’s indictment said he benefited from the land reserve system while serving as chairman of the Chongqing Land Properties Group. This and other groups approve land use and lease it directly to developers in a process involving officials and developers that blurs the boundary between governments and the market, leaving plenty of room for gray zone activities and rent-seeking.

A young, Chongqing state-owned investment group tied to the scandal is Chongqing Jiangbeizui CBD Development and Investment Co. Approved by the municipal government with investment and financing functions, the company is under the direct administration of the municipality and Chongqing’s State-owned Assets Supervision and Administration Commission. It oversees the 9,550 acres in the city’s central business district, infrastructure financing, development and management.

Qiu Daochi, a member of the local Communist Party standing committee and a professor at Southwest China University, told Caijing that planning and floor area adjustments are highly vulnerable to land development corruption. He blames vague standards, limited rights and procedures.

Procedures for controlling land reserves in many cities are not transparent enough, he said, and the lack of public oversight creates difficulties for the future of urban land development.

Yu Li, director of International Centre for Planning & Research at Cardiff University in Britain, told Caijing that the system is flawed.

“If urban development depends on land management, it won’t be sustainable,” he said. “Any development mode relying on land management will face various problems that cannot be fundamentally resolved.”

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