• Mon
  • Dec 22, 2014
  • Updated: 10:21am

Crime more rampant in private sector than China's state-owned firms in 2013: report

Bribery tops list of state-owned firm executives' wrongdoing, while misuse of public funds a common thread between two sectors

PUBLISHED : Monday, 06 January, 2014, 12:22pm
UPDATED : Monday, 06 January, 2014, 3:00pm

There were more private-sector entrepreneurs reported to have committed crimes such as fraud or fund scams than their counterparts in state-owned enterprises last year, a report issued on Monday showed.

The Chinese Entrepreneurs Crime Report 2013 was published by the Chinese Entrepreneur Crime Prevention Research Centre and Beijing Normal University, and is the second such report since the centre’s founding in December 2012.

There were 463 reported criminal cases last year, up by 80 per cent from the previous year. The latest cases included 469 private entrepreneurs and 128 from state-owned firms, with the total marking a 120 per cent increase from 2012.

“This indicates the public [and] media are paying more attention to the criminal cases involving entrepreneurs. Also, the crimes conducted by entrepreneurs are in a rising trend,” said the report.

Corruption was the overarching crime among the entrepreneurs. For state-owned firms’ officers, the top three reported crimes involved bribery, embezzlement and misappropriation of public funds. For the private sector, the top crimes were the illegal collection of personal savings deposits, fraud and misappropriating public funds.

The report is mainly based on the news reports from mainstream media including People.com.cn, Xinhua.org and Chinanews.com. Senior executive positions such as board secretary and chief finance officer are categorised as entrepreneurs.

Most of the implicated entrepreneurs are in top positions such as chairman or general manager. The lack of appropriate supervision on the powerful “enterprise heads” lead to the rise in crime, said the report.

The average age of the accused private-sector executives was 41, and it was 49 for the public sector. The oldest state-owned firm entrepreneur sued last year was 74.

The report added that 220 entrepreneurs were sentenced to jail for periods ranging from six months to 20 years, fourteen were given life sentences, while 10 were placed on death row, five of whom received a two-year suspension.

The report also listed the top 10 criminal cases that year, with the China National Petroleum Corporation (CNPC) corruption scandal ranking the first. At least four senior executives with the CNPC have been arrested and Jiang Jiemin, the former head of CNPC is also under investigation.


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Most successful and corrupt entrepreneurs are connected to political elites and/or their scions in China. It's widely known and accepted that ex-officials, children, friends or cronies of elite politicians exploit their influences to profit from commercial opportunities from business licensing and land developments to securing loans and contracts. This is the established protocol since China's reopening in 1986. No one including "old China hands" can see the scale, scope and depth of corruption as well as its long-term social consequences across Greater China. Student-led protests in the Tianmen Square, 25 years ago this Spring, was a brave but unsuccessful attempt to confront gross social-injustice brought on by collusive regimes determined to gain through corruption and abuse of powers. The brutal oppression of peaceful demonstrators and their cause for a democratic, socially-just and more-compassionate China supplanted a culture of rampant and systematic corruption where industrious individuals strove to gain economically through briberies and collusion with corrupt officials. What we see today in China is the direct consequence of the brutal oppression of 1989: when for a moment, an idealistic hope for democratic governance reinforced by the rule of laws reigned above individual greed and collusive elitism. Lets not forget the principles nurtured by so much youthful sacrifice and blood. June 4, 1989 - 25th Anniversary!
Well, in China, the number of private enterprises by registration is of an order of magnitude larger than the number of SOEs by registration, so this news should surprise nobody. What is important is the percentage of corruption cases in the state-owned and private sectors, not the absolute numbers.

China is run by a lost generation which needs to wake up to redeem itself...otherwise they don't deserve the opportunity delivered to them on a golden plate by Mr. Mao...
State run university uses state-owned media source to determine state-owned companies aren't terribly corrupt. In other news, Coca Cola announced that based on research from Coca Cola, drinking as much Coke as possible each day will improve your health.


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