(China Daily)
Updated: 2008-03-24 07:13

It is not surprising that more than 90 percent of the dirty money former head of Beijing's Haidian District is accused of getting comprised bribes from real estate developers.

Zhou Liangluo, the head of a booming district in the capital, directly got involved with real estate projects in order to get kickbacks from the developers.

The message is clear that his absolute power as top leader of the district could override that of authorities below him to get real estate transactions done.

The development of real estate could face disaster if top leaders of local governments are allowed to wield their powers the way they choose in pursuing personal gains without effective supervision.

The most obvious consequence will be rocketing housing prices. For developers will certainly shift the cost of bribing government leaders on to consumers, in their efforts to get their projects and plots approved.

Corruption cases such as Zhou's are very likely to tilt real estate market order in favor of those who dare to stoop to bribing high-ranking leaders to get things done. This can only lead to more bribery and corruption by others, transforming the market into one of money and power.

With the backing of ranking officials, some developers know no limits to the means they employ in launching their projects - some even hire thugs to use violence in demolishing houses that are in their way or threaten those displaced into accepting unfair compensation.

Some developers resort to cutting back on the quality of their housing projects to save on costs. The developers use bribed officials as shields from punishment for their misdeeds.

The fact that a considerable number of officials prosecuted were found to have been involved in urban real estate development should serve as a clarion call that power must be exercised in the open and not under the table.

The message from Zhou's case is that the power of top leaders at all levels must be checked and supervised to curb abuse.

(China Daily 03/24/2008 page4)