A new mode of collusion between corrupt government officials and
business owners should be watched, urged an article in the
Beijing Youth Daily. An excerpt follows:
According to the National Audit Office, Feng Mingchang, a
private entrepreneur in southern Guangdong Province, defrauded the
Industrial and Commercial Bank of China by taking illegal loans
worth billions of yuan.
What is more shocking is that local government officials were
the major culprits using private enterprises as their personal
automatic teller machines (ATM).
In this case involving billions of yuan, Feng, owner of
Huaguang, a building material manufacturer, should not be able to
escape accountability for this crime. He has been detained for
interrogation and is awaiting sentencing.
But as the investigation continues, a couple of officials of the
Nanhai Finance Bureau, where Feng's company Huaguang is registered,
were allegedly closely involved in the case. To a certain extent,
Feng was just the frontman while those officials were the primary
manipulators behind the crime.
Around the time when Feng became recognized as a bright new
entrepreneur and his company a new star among private enterprises,
companies affiliated with Nanhai Finance Bureau had just failed in
their overseas investments and were eager to fill their financial
shortfall. Feng's company suddenly gained financial and political
weight, which gave it an advantage in the market and enabled it to
obtain many bank loans.
In a reverse off the more commonly known scenario of political
power being bought off by capital, this case shows another scenario
- capital being "kidnapped" by political power to serve the
political power brokers.
To correct such unhealthy government-business relationships, the
country has explored and adopted many measures, including reforming
State-owned enterprises and separating government departments from
enterprises. But capital and power will not give up any chance for
collusion.
Huaguang and Feng are just one typical example but surely not
the last. Such collusion should be carefully dealt with and
severely attacked. The lack of public exposure makes corrupted
officials safer but our national interests more vulnerable.
(China Daily July 20, 2004)