Zhu Xiaohua (
Zhu Xiaohua was detained when Premier Zhu cracked down on the Yuanhua Group smuggling case, which implicated Vice Minister of Public Security Li Jizhou (李紀周) -- a protege of former premier Li Peng (李鵬) -- and Jia Qinglin (賈慶林) -- secretary of the Chinese Communist Party's Beijing Municipal Committee and a favorite of President Jiang Zemin (江澤民).
Zhu's detention was meant to strike a balance of terror among the top leaders. Zhu was sold out by Kong Dan (孔丹), vice chairman and president of the Everbright Group. Kong, typical of members of the "princeling party" (offspring and relatives of powerful Communist Party officials), joined the higher echelons of Everbright when it was founded in 1983. But he failed to make it to the post of chairman and was therefore envious of Zhu Xiaohua, whose background was that of an ordinary citizen and, who, because of his solid talent and expertise, was parachuted into the group by Premier Zhu.
Kong allegedly bypassed the premier and lodged a complaint directly with Jiang about alleged financial losses incurred by Zhu Xiaohua during the Asian financial crisis. The detention-interrogation order was approved by Jiang.
But Zhu's conviction in fact has nothing to do with the charges of corruption involving HK$800 million for which he was interrogated. It is for two graft charges to which he "voluntarily" confessed under coercion during the detention period.
Two businessmen from Hong Kong and Shenzhen -- surnamed Yang and Qiu and alleged to have bribed Zhu -- were taken to Beijing to "assist in the investigation." They were not listed as accomplices, but they disappeared afterwards. There seems to have been a fear that they might retract their testimonies if someone contacted them, thereby mak-ing it impossible to pin a crime on Zhu.
Insiders have told this author that when the Huali Resource Holdings Co -- a company alleged to have bribed Zhu with stock shares -- sent people to Hong Kong to investigate the matter, they were told that the shares were never transferred to Zhu's account. Qiu's "bribes" were in fact mainly loans to Zhu's wife, Ren Peizhen (任佩珍), but the true figures were 10 times higher than Zhu had been informed -- HK$3 million, rather than HK$300,000. Afterwards, Ren felt so ashamed for having harmed her husband that she committed suicide. Their daughter became mentally unstable as a result.
Zhu Xiaohua's family tragedy was also a cause of irritation for Premier Zhu. The circumstances put the investigators at risk. Jiang ordered a swift and strict handling, while the premier instructed that the matter must be handled in accordance with the law. A tug-of-war resulted, but a three-year delay was very unseemly and the matter had to be accounted for before the transition of power at the party's 16th National Congress. So, after many delays, the trial opened on Aug. 20. But the court was unable to issue a verdict that day. The verdict was not decided upon until both Jiang and Premier Zhu had viewed a video recording of the trial.
Clearly, the two had to talk about it before telling the court their final decision. The court then issued its verdict.
A 15-year sentence for a 4 million yuan corruption case is lenient compared to what others have received. People were expecting a death sentence or life in prison. The result has less to do with whether Zhu owned up to the investigators than with the fact that Jiang is in a disadvantaged position in the current power struggle.
Jiang's wish to remain in power may come to naught. Premier Zhu has gained support from a majority of the Politburo's standing committee members. Some reports say that the premier has hinted that he may launch an investigation into the business problems facing telecom tycoon Jiang Mianheng (江綿恆), the president's son, if the president tries to have his own way. If this "telecom king" comes under investigation, I believe he could easily be executed. This is why Jiang wants to revive a lifetime tenure system.
Even though Zhu Xiaohua was sentenced to 15 years, some hinted that he could be released on medical bail after serving a symbolic one year or two. Zhu allegedly is not happy with the verdict and plans to appeal. But since there is no real rule of law in China, the outcome of his appeal will depend on political factors.
Paul Lin is a political commentator based in New York.
Translated by Francis Huang
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