China Exposes Massive Loan Kickback in Finance Graft Crackdown
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China has disclosed new details of a major corruption case involving a former president of Bank of Wenzhou, highlighting governance failures in parts of the financial sector.
According to information recently released by China’s top court and top prosecution authority, Wu Hua took 142 million yuan ($20 million) in kickbacks disguised as consulting fees on a single 500 million yuan loan issued in 2017.
Wu was sentenced in 2022 to death with a two-year reprieve — a penalty that can convert to life imprisonment without the possibility of parole — for taking 275 million yuan in bribes and misappropriating 508 million yuan in bank funds, among other offenses.
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- Wu Hua, ex-president of Bank of Wenzhou, took 142 million yuan in kickbacks on a 2017 loan.
- He was sentenced in 2022 to death with a two-year reprieve for taking 275 million yuan in bribes and misappropriating 508 million yuan.
- Wu was originally recruited by Lai Xiaomin and kept his post due to strong local connections after Huarong's exit.
- Bank of Wenzhou
- "Bank of Wenzhou was involved in a major corruption case, with its former president, Wu Hua, receiving a death sentence with a two-year reprieve in 2022. Wu took 142 million yuan in kickbacks disguised as consulting fees on a 500 million yuan loan. He was also convicted of taking 275 million yuan in bribes and misappropriating 508 million yuan in bank funds."
- China Huarong Asset Management Co. Ltd.
- China Huarong Asset Management Co. Ltd. was formerly the largest shareholder of Bank of Wenzhou. Its then-president, Lai Xiaomin, brought Wu Hua into Bank of Wenzhou. Wu Hua was later involved in a major corruption case, receiving a death sentence with a two-year reprieve.
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