Former Deputy County Magistrate Zhong Aiping of Yuechi, Sichuan was sentenced to 12 years in the first trial and mortgaged 640 million yuan in equipment financing for the People's Hospital
Zhong Aiping, former Party Secretary of the Development and Reform Commission of Guang'an City, Sichuan Province, was sentenced to 12 years in prison on August 29, 2023, for accepting bribes and abusing power.
On September 17th, Pengpai News learned from the prosecution's indictment and Zhong Aiping's first instance judgment that in addition to accusing him of bribery of 4.6063 million yuan, the prosecution also mentioned that Zhong Aiping, when serving as the Deputy County Magistrate of Yuechi County in Guang'an City, abused his power under the instruction of the then Yuechi County Party Secretary Zheng Pengcheng, obtained the consent of relevant department heads through a fake meeting minutes, and mortgaged the hospital's medical equipment in the name of Yuechi County People's Hospital, raising 640 million yuan in illegal financing for the county government.
It is worth mentioning that Zhong Aiping illegally borrowed 640 million yuan for government financing, but only 524 million yuan was actually received. This operation directly caused a loss of 50.9648 million yuan in state-owned funds.
According to a report by the Sichuan Provincial Commission for Discipline Inspection and Supervision on October 30, 2020, Zheng Pengcheng, the Secretary of the Yuechi County Party Committee in Guang'an, is suspected of serious violations of discipline and law and is currently undergoing disciplinary review and investigation. Two months later, the Discipline Inspection Commission and Supervision Commission of Guang'an City reported again that Zhong Aiping, who had already served as the Party Secretary of the Development and Reform Commission of Guang'an City, was suspected of serious violations of discipline and law and was undergoing disciplinary review and supervision investigation.
On April 28, 2022, the Intermediate People's Court of Zigong City, Sichuan Province, determined that Zheng Pengcheng had accepted a bribe of 12.249 million yuan and sentenced him to 12 years in prison for the crimes of bribery and abuse of power.
However, compared to Zheng Pengcheng's confession, Zhong Aiping stated that he only took the lead in implementing the arrangements of County Party Secretary Zheng Pengcheng when bypassing the issue of illegal borrowing for government financing by the Standing Committee of the Yuechi County Party Committee and the Standing Committee of the County People's Congress. The prosecution did not hold any charges of abuse of power or bribery against him. Zhong Aiping has filed an appeal, requesting a change in the verdict of not guilty.
Forgery of meeting minutes
In November 2011, Zhong Aiping rose from the position of Secretary of the Party Working Committee in Shuanghe Street, Huaying City, Guang'an to join the county-level leadership team in Yuechi, Guang'an, shortly after experiencing the "Great Official Earthquake" in the local area. Over the past year, first the Director of Land and Resources and the Director of Urban and Rural Planning and Construction of Yuechi County were subject to "dual regulations", followed by the investigation of County Party Secretary Qi Xiaolin and County Mayor Yang Guangyan. But these lessons from the past did not seem to have taught later generations like Zheng Pengcheng and Zhong Aiping a lesson.
The judgment stated that in the first half of 2015, Zheng Pengcheng, the Secretary of the Yuechi County Party Committee, decided to use the medical equipment of the Yuechi County People's Hospital as collateral for government financing leasing, citing the urgent need for money in the construction of the "Chengdong New Area" in Yuechi County, and instructed the then Executive Deputy County Mayor of Yuechi County, Zhong Aiping, to implement and promote this matter.
The court's trial found that the so-called "Chengdong New Area" does not exist, and "construction urgently requires money" is just a "cover.". Zheng Pengcheng was only commissioned by Cai, the person in charge of Chengdu Caihuixin Enterprise Investment Service Company, a financing intermediary service company.
According to Zheng Pengcheng's instructions, Zhong Aiping held a financing leasing discussion meeting in the county government conference room. At the meeting, the county health director and the director of the county people's hospital held opposing views. Zhong Aiping did not adopt it, and the meeting still decided to establish a finance leasing inspection team to inspect Chengdu Caihuixin Company, with Yuechi Yintai Company with a state-owned background responsible for coordinating the finance leasing matters.
Shortly thereafter, Zhong Aiping personally led a team to Chengdu to discuss this matter with financing parties such as Cai and form a report.
According to the Measures for Discussing and Deciding on Major Matters by the Standing Committee of the People's Congress of Yuechi County, major matters must be collectively decided by the Standing Committee of the County Government, the Standing Committee of the County Party Committee, and the Standing Committee of the County People's Congress. Zhong Aiping wanted to go to the county government executive meeting to study this matter in order to make it legal and compliant, but he did not receive support in reporting to the county mayor. So Zheng Pengcheng included this matter in the discussion and discussion of the county financial leadership group meeting, bypassing the Standing Committee of the County People's Congress. From the judgment, it can be seen that Zhong Aiping made every effort to promote the progress of this matter. However, at the financial and economic leadership group meeting of the county committee, the county mayor did not express any opposition.
On September 21, 2015, the then Director of Health proposed that the government must provide relevant financing documents before agreeing to sign a financing agreement. So, Wen Moujun, Deputy Director of the County Government Office of Zhongaipingpai, issued a written document, and Wen Moujun forged a summary of the executive meeting of the Yuechi County Government. After passing the health bureau's checkpoint, Yuechi County People's Hospital signed a financing consulting service agreement with Chengdu Caihuixin Company.
In December 2015, the People's Government of Yuechi County used medical equipment of Yuechi County People's Hospital as collateral for financing leasing, with a total debt of 640 million yuan. After deducting intermediary fees, security deposits, and handling fees, a total of 115.84 million yuan was borrowed, but only 524.16 million yuan was actually paid in.
Bypassing the Standing Committee of the County Party Committee and the Standing Committee of the County People's Congress
This government financing debt that should not have happened was achieved through a series of operations by Zhong Aiping at the request of County Party Secretary Zheng Pengcheng. This financing debt of 640 million yuan was repaid by the fiscal funds of Yuechi County at the end of 2019, totaling 719.6 million yuan, with a comprehensive financing cost of 17.66% per year.
According to the special audit report of the Sichuan Provincial Audit Office, the financing expenses incurred a financial loss of 50.9648 million yuan.
However, Zhong Aiping does not agree with the allegations of abuse of power in this financing incident, stating that his behavior was "arranged to lead the financing, unaware of the financing violation.". However, the first instance court found that Zhong Aiping, knowing that Yuechi County had no urgent financial needs, still violated the relevant provisions of the debt financing policy and took the initiative to implement it.
The first instance judgment stated that during the financing process, the heads of the Health Bureau and Finance Bureau of Yuechi County refused to provide health and finance letters. Finally, Zhong Aiping took the initiative to coordinate and successfully completed the work of the heads of the two departments, ensuring the smooth progress of the financing lease matters.
Pengpai News noticed that Yuechi County People's Hospital had already reached a financing agreement with Shanghai Far East Investment and Financing Company at that time. Zhong Aiping clearly stated to the hospital manager that "we will find a way to terminate" the contract and keep it confidential. Finally, under the operation and promotion of Zhong Aiping, in September 2015, Yuechi County People's Hospital terminated the cooperation agreement with Far East Company, and the economic losses caused were borne by Caihuixin Company, which was waiting to enter.
The first instance court ruled that the financing and borrowing behavior of Yuechi County violated relevant national and local policy regulations.
According to regulations, local cities and counties shall borrow on behalf of the provincial government. Government debt can only be borrowed through the government and its departments, and cannot be borrowed through enterprises and institutions. Among them, Zhong Aiping also gave instructions on the Notice of the People's Government of Guang'an City on Issuing the Management Measures for Government Debt in Guang'an City and the Management Measures for Government Debt in Yuechi County.
The judgment stated that Zhong Aiping, despite knowing that the financing did not comply with policies and regulations, and despite clear opposition from the Health Bureau and County Hospital, still vigorously promoted the work under the pretext of "County Party Secretary Zheng Pengcheng's arrangement". He organized several special meetings with the County Finance Bureau, Health Bureau, People's Hospital, Legal Affairs Office, Government Office and other departments to implement and promote the work, and also arranged for the Chairman of Yintai Company to be specifically responsible. Ultimately, this matter was facilitated.
After the funding of 540 million yuan was received, Yuechi County People's Hospital handed over the hospital account and U-shield to Yintai Company. According to the arrangement of Zheng Pengcheng and Zhong Aiping, this fund will be transferred to Yintai Company through the county hospital account, and then transferred to the county finance bureau for overall use.
The judgment stipulates that the due process for such financing leasing matters should be: after the county government executive meeting studies it, it should be submitted to the county party committee for approval, and then submitted to the county people's congress standing committee for review. The standing committee of the people's congress will make a resolution before execution. This financing and borrowing not only bypassed the Standing Committee of the County Party Committee, but also did not submit it for review by the Standing Committee of the County People's Congress. The Standing Committee of the People's Congress of Yuechi County stated that it only learned about the relevant situation at the 25th meeting of the 17th Standing Committee in April 2018.
The prosecution withdrew the accusation of illegal financing and bribery of 1.28 million yuan
Did Zhong Aiping, as the executive deputy county mayor responsible for the implementation and promotion of the entire project, benefit from the illegal financing and borrowing of 640 million yuan by the Yuechi County government?
Pengpai News noticed that the People's Procuratorate of Wusheng County accused Cai Huixin Company of sending 1.28 million yuan in cash to Zhong Aiping three times in gratitude for his care and coordination in the financing leasing business, as stated in the indictment. Zhong Aiping accepted it.
However, the prosecution later withdrew the aforementioned charges. On June 2, 2023, the People's Procuratorate of Wusheng County issued a "Change of Prosecution Decision", which stated: "During the court trial, it was found that some facts of the case did not match the facts charged in the indictment." Based on the verified facts, no charges were made against the fact that "Zhong Ai Ping Shou Cai, the business manager of Caihuixin Company, sent 1.28 million yuan in cash.". The facts and applicable laws of other accusations remain unchanged.
This means that although Zhong Aiping did not benefit from this illegal financing project, he still cannot escape the responsibility.
The judgment states that Zhong Aiping was born in 1977 in Guang'an City, Sichuan Province. Prior to the incident, he was the Secretary of the Party Group of the Development and Reform Commission of Guang'an City. Previously, Zhong Aiping served as the Director and Secretary of the Party Working Committee of Shuanghe Street Office in Huaying City, Deputy County Magistrate of Yuechi County, Standing Committee Member and Executive Deputy County Magistrate of Yuechi County Committee, Director of Guang'an Housing and Urban Rural Development Bureau, Chairman of Guang'an Tourism Investment and Development Co., Ltd., and Director of the Council of Guang'an Supply and Marketing Cooperative Society.
The facts determined by the judgment indicate that Zhong Aiping's bribery crime occurred during his tenure as the Director and Secretary of the Party Working Committee of Shuanghe Street Office in Huaying City, Deputy County Magistrate of Yuechi County, Standing Committee Member and Executive Deputy County Magistrate of the County Committee.
The first instance verdict states that in 2006, Zhong Aiping served as the director of the Shuanghe Street Office in Huaying City, responsible for the land acquisition and demolition work of the Huaying "Huijing Era" real estate project. He greeted the developer and allowed his friend Li Moujun to successfully undertake the plastic steel door and window business of the project. Li Moujun made a profit of 350000 yuan from this. At the end of 2011 and the beginning of 2012, Li Moujun gave Zhong Aiping 100000 yuan in two installments.
According to the first instance judgment, in 2013, Zhong Aiping served as the Deputy County Magistrate of Yuechi County and was in charge of urban construction work. Through Zhong Aiping's relationship, Li Jun successfully undertook the fire protection project of the Ruiding Mansion in Yuechi. In 2014, Li expressed his gratitude by expressing his desire to send money to Zhong Aiping. Zhong Aiping refused. Both parties have reached an agreement that starting from the Ruiding Mansion project, Li Moujun will be responsible for half of the fire protection project, and the profits will be shared equally. Zhong Aiping does not actually contribute capital, but is only responsible for greeting real estate developers to pick up the project, while Li Moujun is responsible for signing the contract and implementing it specifically. Since then, through the relationship with Zhong Aiping, Li Moujun has successively obtained 11 real estate projects in Yuechi County in terms of fire protection and hydropower engineering business.
The judgment determines that the total cost of these fire protection projects is over 80 million yuan.
Judgment statistics: From 2011 to 2019, Zhongai received cash of 100000 yuan from project owner Li Moujun and 3.0263 million yuan from project shares, and also received cash of 200000 yuan from real estate developer Mao Mouwu, totaling more than 3.32 million yuan. Among them, 3.0263 million shares were used, except for Zhong Aiping's withdrawal of 130000 for personal consumption, the rest were used to cover the loan losses of the two individuals for repayment, and the remaining profits were not settled or actually obtained.
Refusing to serve a 12 year sentence in the first trial, insisting on not guilty and appealing
On August 29, 2023, the People's Court of Wusheng County convicted Zhong Aiping of bribery in the first instance, sentenced him to 10 years and 6 months in prison, and fined him 500000 yuan. Sentenced to 4 years imprisonment for the crime of abuse of power. The punishment for multiple crimes is combined, and it is decided to carry out 12 years of imprisonment and a fine of RMB 500000. Retrieve 3.3263 million yuan of illegal gains and turn it over to the national treasury. At the same time, the investigating authority also seized 5 units of the involved houses, including 2 units in Chengdu High tech Zone and 3 units in Banan District, Chongqing.
Zheng Pengcheng, the then secretary of the Yuechi County Party Committee who arranged for Zhong Aiping to illegally raise 640 million yuan in debt, was also sentenced to 12 years in prison for bribery and abuse of power. On April 28, 2022, the Intermediate People's Court of Zigong City, Sichuan Province held a hearing to hear this case. The court sentenced Zheng Pengcheng to 10 years in prison for bribery and 5 years in prison for abuse of power; Punishment for multiple crimes, with a sentence of 12 years imprisonment. At the same time, the illegally obtained property shall be confiscated and turned over to the national treasury, and a fine of 1 million yuan shall be imposed.
According to reports, from 2010 to 2020, Zheng Pengcheng took advantage of his positions as Deputy County Magistrate and County Magistrate of Wusheng County, as well as Secretary of the Yuechi County Committee, to provide assistance to relevant enterprises and individuals in engineering contracting, fund allocation, company operation, business development, planning adjustments, and other aspects. He has received a total of 12.249 million yuan in gifts from others multiple times. After the verdict was pronounced, Zheng Pengcheng pleaded guilty and served the sentence without appealing.
Zhong Aiping insisted on his innocence and questioned all bribery allegations.
Zhong Aiping and his defense counsel argue that the confessions of Li Jun and Mao Wu were obtained under compulsory measures and are illegal evidence that should be excluded. Zhong Aiping insists that the prosecution's charges of bribery and abuse of power are not substantiated. Zhong Aiping claimed that he had confiscated 100000 yuan in cash from Li Moujun; Li Moujun's fire engineering project in Yuechi has the approval authority of the fire brigade, which is not within his jurisdiction. He once introduced Li Moujun to the developer, but did not "say hello". These fire engineering projects were all contacted by Li Moujun himself.
Zhong Aiping said that when Li Moujun proposed a "partnership", he only took care of his emotions and casually agreed, never calculating the amount of money. The so-called 3.0263 million shares actually only had 130000 fund transactions, which were loans and have been repaid. The remaining 2.8963 million shares never existed; Regarding the accusation of Mao Mouwu giving away 200000 yuan, which was a dividend from investing in his brick factory, 70000 yuan in the first year and 130000 yuan in the second year, it was not a bribe, and the time and location of the money given by the prosecution did not exist.
Zhong Aiping defended himself in the appeal, stating that the county government is responsible for the county mayor's system, and during the financing lease process involved, the county mayor is the contract approver and the first person responsible for the arrangement and use of funds. The prosecution's accusation of abuse of power against him should not be established in accordance with the law. For the arrangement and use of financing funds, without the consent of the county mayor, he can change the use of hundreds of millions of funds as the deputy county mayor, which goes against common sense. At present, Zhong Aiping has filed an appeal to the Intermediate People's Court of Guang'an City, requesting a change in the verdict of not guilty in the appeal.
