Jun 04, 2024 08:57 PM
FINANCE
How a Corrupt Huarong Executive Took $151 Million in Bribes in Five Years
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The No. 2 Intermediate People’s Court of Tianjin announced the first trial verdict that Bai Tianhui, former general manager of China Huarong International Holdings, was sentenced to death and has been deprived of political rights for life on May 28. Photo: The No. 2 Intermediate People’s Court of Tianjin
How did Bai Tianhui, a former general manager at China Huarong International Holdings Ltd., amass over 1.1 billion yuan ($151 million) in bribes in five years?
Bai used his influence to help companies acquire projects and financing, a court in Tianjin announced last week.
The bribes that Bai took from 2014 to 2018 were “extremely huge,” and his crimes were “particularly severe,” the court said. Bai is the second former executive associated with state-owned bad-debt manager China Huarong Asset Management Co. Ltd. to be sentenced to death without reprieve. Huarong International is a Hong Kong subsidiary of Huarong.
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- Bai Tianhui, a former general manager at China Huarong International Holdings, amassed over 1.1 billion yuan ($151 million) in bribes from 2014 to 2018 to help companies acquire projects and financing.
- Bai took bribes in high-profile projects, including a botched land development in South Korea and funding the acquisition of AC Milan by a consortium led by a Chinese businessman.
- Bai was sentenced to death without reprieve, similar to former Huarong chairman Lai Xiaomin, who was executed for similar crimes.
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Who’s Who
- China Huarong International Holdings Ltd.
- China Huarong International Holdings Ltd. is a Hong Kong subsidiary of state-owned China Huarong Asset Management Co. Ltd., established to handle nonperforming assets from China's major state banks. Under former chairman Lai Xiaomin, Huarong expanded into a financial conglomerate involved in securities, trusts, banking, and financial leasing. However, this aggressive expansion and opaque deals led to significant debt and corruption, with top executives taking massive bribes from financing and investment activities.
- China Huarong Asset Management Co. Ltd.
- China Huarong Asset Management Co. Ltd. is a state-owned entity established in 1999 to manage and dispose of nonperforming assets from China’s “Big Four” state banks. Under former chairman Lai Xiaomin, it expanded into a financial conglomerate, engaging in various financial services but amassed significant unpayable debt through opaque deals. Two of its executives, including Lai, have faced severe corruption charges, with Lai being executed for his crimes.
- CCB International (China) Ltd.
- CCB International (China) Ltd. is a subsidiary of the state-owned China Construction Bank Corp. (601939.SH). Bai Tianhui, who later became the general manager of Huarong International, worked at CCB International before joining Huarong around 2013.
- Jin Bao Bao Holdings Ltd.
- Jin Bao Bao Holdings Ltd. is a Hong Kong-listed company linked to Bai Tianhui. In 2017, it agreed to provide an $8.3 million loan to a Hong Kong company controlled by businessman Li Yonghong, who led the acquisition of a 99.9% stake in AC Milan. The deal was reportedly connected to Bai's bribery activities.
- Rossoneri Sport Investment Lux
- Rossoneri Sport Investment Lux is a consortium led by businessman Li Yonghong that acquired a 99.9% stake in the Italian soccer team AC Milan in 2017. Huarong’s two Hong Kong units, including Huarong International, were involved in financing this deal. Bai Tianhui, a former general manager at Huarong International, received bribes from business owners, including Li, for providing this financing support.
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What Happened When
- 1999：
- Huarong was established as one of four state-owned asset management companies.
- By 2013：
- Bai joined Huarong in or around this time, along with his former superior at CCB International (China) Ltd.
- 2014 to 2018：
- Bai took bribes over this period.
- 2016 and 2017：
- Huarong paid a combined $3.4 billion to buy a piece of undeveloped land on Jeju Island, South Korea.
- 2017：
- Huarong took part in the acquisition of a 99.9% stake in AC Milan by Rossoneri Sport Investment Lux.
- June 2018：
- Bai was placed under investigation.
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