Former company chairman sentenced to life

(Xinhua)
Updated: 2009-02-12 16:33

JINAN -- Zhang Jialing, former board chairman of China Qingqi Group Co. Ltd, a large majority state-owned motorcycle manufacturer, was sentenced to life in prison for letter of credit fraud and taking bribes on Wednesday, a court in east China's Shandong Province said.

All the wealth of Zhang, 67, who played a leading role in promoting a small motorcycle manufacturer into the city's first listed company in Shanghai Stock Exchange in the 1990s, was confiscated.

In addition, the company was fined 10 million yuan for letter of credit fraud. Its Guangsu branch was fined 12 million yuan for tax evasion, the ruling said.

The company defrauded 12 banks in the provincial capital city of Jinan, Qingdao and Shanghai who issued 294 letters of credit worth a total of 4 billion yuan (US$585 million), according to the Jinan Municipal Intermediate People's Court ruling.

Zhang took part in all the frauds that led the banks suffer a loss of 790 million yuan , the court said. Zhang embezzled 6.5 million yuan of public money, the Qingqi Group's money, which is yet to be reclaimed.

The court was told he also took bribes of 3.7 million yuan.

The court heard he was responsible for the company's Guangsu branch evading taxes worth 11.3 million yuan between 2002 to 2004.

Zhang confessed all his crimes and told the court he hoped it would give him a minor punishment. He also said the company lacked risk control and he lacked a knowledge of the law and himself lacked self discipline which all contributed to the crimes.