After nearly four years of investigation, former chief accountant Luo Jiayang of the China National Cereals, Oils and Foodstuffs Corporation (COFCO) was recently sentenced to 15 years in prison for corruption and bribery. In comparison, Bai Tianhui, the former general manager of China Huarong International Holdings Ltd, and his former superior Lai Xiaomin were sentenced to death for bribery. Analysts believe that Luo Jiayang’s relatively lenient sentence may be due to special circumstances or some kind of agreement reached with the authorities.
The Hebei Handan Intermediate People’s Court handed down the verdict on May 31, sentencing Luo Jiayang to 15 years in prison for embezzlement and bribery.
According to the court’s ruling, from 2006 to 2010, Luo Jiayang, while serving as the chief accountant of China National Machinery Industry Corporation and chairman of Guoji Financial Limited Liability Company, conspired with others to embezzle approximately RMB 31.36 million (about $4.34 million) from Guoji Financial through false consulting service agreements and bonuses.
The court also stated that from October 2000 to early 2018, while holding positions such as chief accountant of China National Machinery Import & Export Corporation, assistant to the president and chief accountant of China Machinery Equipment Group Corporation, and general manager and chairman of Guoji Financial, Luo Jiayang unlawfully accepted around RMB 10.99 million (about $1.52 million) in bribes for providing assistance to relevant units and individuals.
The court indicated that Luo Jiayang had been accepting bribes since October 2000, spanning over 17 years.
Public records show that Luo Jiayang, a 59-year-old native of Yiwu, Jinhua, Zhejiang Province, graduated from Jiangxi University of Finance and Economics in August 1986 before starting his career in the finance department of China Machinery Import & Export Corporation. He held various positions within the company and its subsidiaries before joining COFCO as chief accountant in 2018, where he served until his downfall in August 2020.
The day after Luo Jiayang’s arrest in August 2020, an article published by a political commentary WeChat account affiliated with the official Beijing Youth Daily piqued public curiosity about his background, citing the uncommon surname “Luo” suggesting a possible connection to horses. The article hinted at clues related to Luo Jiayang’s identity, such as having an ID number starting with “36” and graduating from Jiangxi University of Finance and Economics, leading to speculation about his ties to influential figures.
In contrast, a week before Luo Jiayang’s arrest, former chairman of Huarong, Lai Xiaomin, also a graduate of Jiangxi University of Finance and Economics, stood trial for charges including corruption, bribery, and bigamy, involving a total of RMB 1.788 billion (about $2.76 billion) in illicit funds. Lai Xiaomin’s case was swiftly prosecuted, and he was executed just 24 days after the final sentence, highlighting the severity of financial corruption within the Chinese government.
Experts in political affairs, including Tang Jingyuan, residing in the United States, suggested that Luo Jiayang’s lower reported embezzlement and bribery amounts might hint at undisclosed factors or agreements with authorities, indicating a complex web of corruption within the system.
Tang Jingyuan emphasized that in cases of widespread corruption among Chinese officials, Luo Jiayang’s relatively modest amounts might indicate potential agreements or other factors impacting his sentencing. He noted that Luo Jiayang’s case was strategically framed and highlighted the selective approach taken by authorities in prosecuting these high-profile corruption cases to maintain stability within the ruling elite.
Dwelling further into the intricate web of corruption, former legal advisor to the Inner Mongolia Autonomous Region government in China, Du Wen, suggested that Luo Jiayang’s meticulously orchestrated case was possibly shielded by influential figures, allowing for a lighter sentence due to the timeframe of his crimes occurring before the 18th National Congress of the Communist Party of China.
The interconnected relationships and power dynamics within the officials implicated in corruption cases like Bai Tianhui, Lai Xiaomin, and Luo Jiayang underscore the complexity of political and economic corruption in the Chinese government. The intricate interplay of alliances and betrayals within these cases reveals the deep-rooted culture of corruption that extends to even the top levels of leadership.
Such revelations surrounding high-profile corruption cases highlight the entrenched nature of graft within the Chinese political structure and the delicate balance of power and accountability that Chinese officials navigate in their pursuit of wealth and influence. Ultimately, the shadow of corruption continues to loom over the Chinese political landscape, raising questions about accountability, transparency, and the rule of law in the face of systemic corruption.