Graft-ridden arbitration system on trial as Beijing seeks to boost its credibility
A corruption scandal involving copy giant Fuji Xerox's Chinese subsidiary gained traction yesterday after a lawyer involved in the case was suspended by his firm.
Zhang Decai, a lawyer at Beijing-based law firm Zhonglun Jintong, was suspended and 'severely reprimanded', for his role in at least one secret meeting between lawyers representing Fuji Xerox and arbitration officials overseeing a dispute between Fuji and one of its clients, according to a statement from the firm.
The original dispute began when Tianjin Guangyin Real Estate filed for arbitration in August 2003, claiming Fuji Xerox sold it faulty printers worth 2.5 million yuan.
Last month a video clip of a secret dinner meeting between Mr Zhang, Fuji Xerox's in-house legal counsel Chen Zhenwei and a government arbitration official surnamed Qi was posted on the Web. The video was filmed by Tianjin Guangyin employees last July.
In November, the arbitration commission ordered Fuji to pay just over 100,000 yuan in damages, far less than the claimant's demand for full reimbursement.