In Depth: Investigators Find City’s Metro System Is Riddled With Graft
Listen to the full version

When Hefei businessman Cheng Dong learned a metro station would be built close to his car dealership, he decided to do something about it.
His solution? Over 35 million yuan ($4.8 million) in bribes given to local metro construction boss ex-vice mayor Yao Kai, according to a source who attended Cheng’s trial in January. The bribes were paid mostly in dealership shares and some cash.

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- DIGEST HUB
- Cheng Dong bribed the former Hefei metro construction boss Yao Kai with over 35 million yuan to influence nearby metro development favoring his dealership. Several officials, including Yao, have faced consequences under an intensified anti-corruption crackdown in the city's transit sector.
- Chen Hua, Yao's successor, was sentenced to 14 years for taking over 31.4 million yuan in bribes, and despite retraction attempts, his appeal against the verdict was rejected.
- Corruption in Hefei's urban rail system is widespread, especially in the bidding process, leading to investigations and sentencing of multiple officials like Wu Si’er, highlighting systemic issues.
Cheng Dong, a businessman from Hefei, found out about a new metro station planned near his car dealership and decided to intervene by offering over 35 million yuan (about $4.8 million) in bribes to Yao Kai, the ex-vice mayor overseeing metro construction. These bribes were primarily given in dealership shares and cash to influence the construction project's outcome. Cheng's actions are part of a larger crackdown on corruption within Hefei’s urban rail transit system, resulting in the downfall of at least six senior officials since 2022, including Yao. These cases highlight systemic corruption issues in China’s public transport sector, particularly in the bidding processes for lucrative construction projects [para. 1][para. 2][para. 3][para. 4].
Amid these revelations, Anhui province launched a sweeping investigation to rectify corruption in construction project bidding. The Hefei metro construction company itself has committed to enhancing supervision and management. Hefei, the capital city of Anhui with nearly 10 million residents, has been expanding its metro system rapidly since the opening of its first line in 2016 [para. 5][para. 7]. Yao Kai, initially the general manager of Hefei Rail Transit Group Co. Ltd., oversaw this expansion. He later became Hefei’s vice mayor while maintaining strong influence over the city’s infrastructure. However, he was investigated for corruption in 2022, accused of accepting over 106 million yuan in bribes from 2001 to 2022. Yao’s verdict is still pending [para. 6][para. 8][para. 9].
Following Yao, Chen Hua, Yao’s successor at Hefei Metro, was also investigated for corruption. Chen used his influence in the transit sector to accept significant bribes, leading to his 14-year prison sentence for accepting over 31.4 million yuan in cash and assets [para. 10][para. 11]. The initial discovery of corruption in Hefei’s urban rail transit sector centered around Wu Si’er, who held key roles in Hefei Metro. Wu is accused of facilitating corrupt bidding processes, helping companies win project tenders by paying bribes, a common practice in the multi-stage construction of subway lines [para. 12][para. 13][para. 14][para. 15]. From 2013 to 2022, Wu accepted 11.7 million yuan in bribes, with transactions often funneled through his mistress, Lu Jing. Wu was sentenced to seven and a half years in prison due to his cooperation with authorities by reporting other offenders [para. 16][para. 17][para. 18].
The case involving Chen is particularly controversial, as he initially confessed to allegations during his January 2024 trial but later retracted his confession, prompting an appeal. Prosecutors accused Chen of manipulating project contracts and expediting payments in exchange for bribes. In his appeal trial in November 2024, Chen denied wrongdoing, arguing that the bribery claims were unfounded since he did not personally benefit from the projects. He suggested that the successful bids were due to the reputation of the companies rather than his influence. Despite Chen’s defense, the Anhui Provincial High People’s Court upheld his original verdict, indicating that bribery to secure bids was a common industry practice. Chen plans to file another appeal [para. 20][para. 21][para. 23][para. 25].
In addition to Yao, Chen, and Wu, at least three other officials in Hefei’s urban rail transit system have been investigated since 2022, but their verdicts have yet to be publicly disclosed [para. 26].
- Hefei Rail Transit Group Co. Ltd.
- Hefei Rail Transit Group Co. Ltd., trading as Hefei Metro, began constructing Hefei's metro system, which opened its first line in 2016. The company has expanded rapidly, and Hefei now has six metro lines, making it one of China's 20 longest systems. The group has been plagued by corruption scandals, with several senior officials, including former general managers Yao Kai and Chen Hua, being investigated for accepting bribes related to the metro's construction projects.
- Hefei Urban Construction Investment Holding Co. Ltd.
- Hefei Urban Construction Investment Holding Co. Ltd. is a state-owned enterprise focused on infrastructure and industrial investments, where Yao Kai had been working his way up before becoming the inaugural general manager of Hefei Rail Transit Group Co. Ltd. (Hefei Metro).
- Taitong Construction Co. Ltd.
- Taitong Construction Co. Ltd. is a Beijing-based company mentioned in the article for securing project tenders and procurement bids with the assistance of Wu Si’er, a former Hefei Metro official. The company was part of the corruption case related to the Hefei urban rail system, in which Wu facilitated bids for various companies in exchange for bribes.
- New United Group Co. Ltd.
- New United Group Co. Ltd. is a Jiangsu-based railway supporting system provider. It was involved in corruption schemes within Hefei's urban rail sector, as Wu Si’er, a key figure at Hefei Metro, facilitated its project tenders and procurement bids for materials like emergency power supplies, fire safety equipment, and ventilation devices. Wu accepted bribes to assist such companies in securing tenders and settling project payments.
- 2009:
- Yao was named the inaugural general manager of Hefei Rail Transit Group Co. Ltd.
- 2016:
- Hefei Metro opened its first line.
- 2017:
- Chen Hua assumed the role of general manager of Hefei Metro.
- 2018 to 2022:
- Chen Hua accepted cash and assets worth over 31.4 million yuan.
- January 2022:
- Yao was made Hefei's vice mayor.
- By April 2022:
- Yao was placed under investigation by local anti-corruption authorities.
- Since 2022:
- Downfall of at least six senior officials in Hefei's urban rail system, including Yao.
- July 2023:
- Yao's trial commenced, where he was alleged to have accepted over 106 million yuan in bribes.
- August 2023:
- Announcement made that Chen was under investigation for using his power in the transit sector to gather bribes.
- August 2023:
- Wu Si'er was sentenced to seven and a half years in prison.
- November 2024:
- Chen Hua was sentenced to 14 years of imprisonment.
- November 2024:
- Anhui Provincial High People's Court rejected Chen's appeal, upholding the original verdict.
- PODCAST
- MOST POPULAR