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China puts former top economic planner on trial
by Staff Writers
Beijing (AFP) Sept 24, 2014


Former HK official plays down mainland cash gift
Hong Kong (AFP) Sept 24, 2014 - A former top Hong Kong official testifying at his corruption trial Wednesday played down suggestions he was given HK$11 million ($1.4 million) in 2007 by a China official overseeing the city's affairs.

In testimony earlier this week Rafael Hui, the city's former chief secretary, said he received a payment of around HK$11 million from an undisclosed source in Beijing.

He and property tycoons Thomas and Raymond Kwok are among five people charged with offences related to payments and unsecured loans amounting to HK$34 million.

The charges do not relate to any payments by Beijing.

The case has shocked Hong Kong, where the Kwoks' Sun Hung Kai Properties is the biggest developer by market capitalisation and owns some of the most recognisable real estate including the 118-floor International Commerce Centre.

Hui had told the court he was approached in 2007 by Liao Hui, then the head of China's Hong Kong and Macau Affairs Office, who urged him to stay on as the chief secretary, the South China Morning Post reported.

The former chief secretary declined Liao's request, saying that the salary was not enough to sustain his luxurious lifestyle and that he would looking for work in the private sector.

Hui was then told by co-defendant Francis Kwan later in the year that someone in Beijing had passed money to him (Kwan) meant for Hui. But Kwan refused to reveal the donor's identity.

Hui said he then met Liao again in Beijing in March 2008 where Liao told him "I've helped you already, don't overspend any more", the Post reported, leading to speculation Liao could be the origin of the payment.

But in fresh court testimony Wednesday Hui played down any suggestion the money came from Liao.

"I didn't say director Liao paid the money himself," Hui told the court.

"When I asked him (Kwan), my focus was on why there was this money for me in Beijing," Hui said.

"He said someone in Beijing contacted him," he said. "He was clearly saying that he could not tell me."

The prosecution centres around claims that the tycoon brothers had bribed Hui to be their "eyes and ears" in the government.

The billionaire brothers, who jointly chair Sun Hung Kai, were arrested along with Hui in a major swoop by graft investigators two years ago.

A former top Chinese economic planning official stood trial Wednesday for allegedly taking bribes worth nearly $6 million, the latest episode in the country's much-publicised anti-corruption campaign.

Liu Tienan, former deputy director of the National Development and Reform Commission, is charged with taking 35.58 million yuan ($5.8 million) in bribes, said a statement posted by the Langfang Intermediate People's Court in the northern province of Hebei.

Prosecutors called for penalties that could see Liu jailed for life, according to the statement on the court's verified account on Sina Weibo, a Chinese equivalent of Twitter.

The account showed a photo of Liu, clad in a black jacket and standing stiffly in court on Wednesday flanked by two uniformed court police officers.

Liu exploited his position to take bribes from various business people in exchange for benefits such as project approvals and help in securing car dealerships, the statement said.

The bribes were taken as cash, and gifts for his son -- including a villa in Beijing and a Porsche -- and in other forms such as a job created for the son, according to the statement.

The court released the trial's proceedings on the Weibo account. According to one of the postings, Liu pleaded for leniency, arguing that he contributed to the anti-graft drive by "drawing on his personal experiences" to compile suggestions on how to prevent corruption.

The government should delegate the power to approve projects and let the market make its own decisions, the posting cited Liu as saying.

It added that he confessed to investigators he had received bribes worth nearly 19 million yuan, of which authorities were initially unaware.

It was unclear whether that was part of the alleged 35.58 million yuan in bribes and how that would affect his case. Chinese courts often show some leniency to officials who reveal previously unknown information.

The court adjourned Wednesday afternoon and said a verdict would be announced at "an appointed date", according to a separate posting.

Allegations against Liu surfaced in 2012 when a journalist at investigative magazine Caijing accused him of fraud, graft and sending death threats.

He was placed under investigation last year and expelled from the ruling Communist Party.

President Xi Jinping has vowed to root out corrupt officials ranging from high-ranking "tigers" to low-level "flies", and warned that graft could destroy the party.

Corruption has caused widespread public anger in China and the drive has been widely publicised.

But critics say no systemic reforms have been introduced to combat it, while citizen activists calling for such measures have been jailed on public order offences.

In addition to Liu, other current and former top figures who have been ensnared in the anti-corruption campaign include Jiang Jiemin, who oversaw state-owned firms, and Zhou Yongkang, China's powerful onetime internal security czar.

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