Director at East China’s Suzhou Industrial Park Probed for Procurement Fraud
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The director of a pioneering international industrial development zone in East China’s Suzhou, Jiangsu province has been placed under investigation for corruption after a whistleblower publicly accused him of taking part in a procurement fraud scheme, according to local authorities.
Zhu Huan, the 44-year-old director of the commerce bureau at the China-Singapore Suzhou Industrial Park, has been suspended as local graft busters investigate him for alleged misconduct, according to an announcement released by local authorities on the official Suzhou Daily’s WeChat account Friday.
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- Zhu Huan, director of Suzhou's China-Singapore Industrial Park, is under investigation for alleged procurement fraud following accusations by subordinate Ma Xiangyu.
- The probe revealed collusion in bidding processes for five projects from 2021-2023 worth 8.47 million yuan ($1.18 million), but Zhu's role is still being investigated.
- Ma's allegations involve KPMG, PwC, and MCI Suzhou, though these firms have denied any wrongdoing.
- KPMG International Ltd.
- KPMG International Ltd. is one of the three firms mentioned in Ma Xiangyu's allegations of procurement fraud involving the China-Singapore Suzhou Industrial Park. It is named as one of the foreign consulting firms allegedly colluding with Zhu Huan to win government contracts. KPMG has not publicly commented on the allegations but maintains strict internal compliance standards, as stated by Lin Xiaoli, a former KPMG employee now with PricewaterhouseCoopers (PwC).
- PricewaterhouseCoopers International Ltd.
- PricewaterhouseCoopers International Ltd. (PwC) is one of the firms accused in the alleged procurement fraud at Suzhou Industrial Park. Ma Xiangyu claimed the firm colluded to win government contracts. However, Lin Xiaoli, a project manager at PwC, denied these accusations, asserting that PwC's strict internal compliance standards prevent such illegal acts. The firm has not publicly commented on the allegations.
- MCI Suzhou
- MCI Suzhou is mentioned in the article as a local conference and exhibition service provider allegedly involved in the procurement fraud case in the China-Singapore Suzhou Industrial Park. Ma Xiangyu, the whistleblower, claims that Zhu Huan colluded with MCI Suzhou, along with KPMG International Ltd. and PricewaterhouseCoopers International Ltd., to manipulate the bidding process for government contracts since 2020. The firm has not publicly commented on the allegations.
- As early as February 2023：
- Ma Xiangyu initially reported Zhu Huan’s misconduct to local and provincial graft busters.
- July 27, 2024：
- Ma Xiangyu went public with his accusations against Zhu Huan.
- July 28, 2024：
- Lin Xiaoli denied any wrongdoing in the procurement process in a phone interview with Caixin.
- July 29, 2024：
- Suzhou municipal authorities established a task force to investigate Ma Xiangyu's claims.
- August 2, 2024：
- Local authorities announced the suspension of Zhu Huan and the initial results of the investigation on the official Suzhou Daily’s WeChat account.
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