China Corruption & White Collar Crimes Watch: China Strengthens Supervision Over Civil Servants

by Sheppard Mullin Richter & Hampton LLP
Contact

In a June 2011 report issued by the People’s Bank of China (and as prepared by the China Academy of Social Sciences) the PRC government found 18,000 Party and government officials fled the country since 1990 with over US$120 billion in government funds missing. The leadership has had significant challenges in stamping out corruption at multiple levels. Foreign companies should be aware of these efforts in dealings with officials and management of state-owned enterprises.

On February 28, 2012, the Ministry of Supervision reported that 36,000 government officials were punished for violating laws and regulations in 2011. The MOS found that 8,500 individuals were found guilty of embezzlement and bribery. The government also sought to crackdown on illegal forced demolition and misappropriation of land (11 cases involving 57 officials) and issues concerning food and drug safety (13 cases involving 269 officials). The ministry has also focused on dealing with commercial bribery cases involving state-owned enterprises, and matters involving the misuse of government property and vehicles.

Hand in hand with the government’s own investigations, the Party also has its own disciplinary system to check corrupt officials. In this regard, the Central Commission for Discipline Inspection (CCDI) of the Communist Party of China issued its annual report on February 19, 2012, found that the Party punished 142,893 officials, and with 5,334 officials referred for criminal prosecution. The CCDI report also proposed special campaigns to root out corruption in key areas, such as the construction sector, government-funded events and the use of public vehicles. The Party also called for greater transparency in public affairs, better protection of witnesses in corruption cases, and to use social media platforms for fighting corruption.

In addition to the MOS and CCDI reports, on February 22, 2012, regulations jointly issued by the Organization Department of the CPC Central Committee and the Ministry of Human Resources and Social Security jointly issued regulations that are intended to control nepotism and corruption in the civil service. The new regulations provide that civil servants and their spouses/relatives are barred from holding positions that have a director-subordinate relationship or from holding two separate positions that report to the same director. Civil servants are also asked to avoid situations such as recruitment, promotion or demotion of staff, taxation and approval for overseas travel that involve their relatives. If two civil servants marry or form a familial relationship, their posts are required to be adjusted. A failure to comply with the regulations may result in penalties including the removal from office. These anti-nepotism rules may check the ambitions of the mom and pop teams that seek to control the village coffers, but unlikely to impact the appointment of Party princelings to posts at major State-owned enterprises.

The quarterly China Corruption & White Collar Crimes Watch is an on-the-ground review of updates in the law or policies concerning China’s anti-bribery activities, and is prepared by the Beijing office of Sheppard Mullin. Any questions regarding these issues or this blog can be directed to Becky Koblitz at BKoblitz@sheppardmullin.com or James Zimmerman at JZimmerman@Sheppardmullin.com in Beijing.

 

Written by:

Sheppard Mullin Richter & Hampton LLP
Contact
more
less

Sheppard Mullin Richter & Hampton LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
Feedback? Tell us what you think of the new jdsupra.com!