Ex-China Huarong Chairman gets the death penalty after conviction. Chinese authorities are netting those guilty of corruption as mandated by Beijing.
The Chinese mainland government is serious about keeping tabs on graft and corruption. Communist countries are unlike democratic countries where CEOS can get away with almost anything.
China has zero-tolerance for erring executives, and the former head of a Chinese state-owned asset management company learned the hard way. Last Friday, his death penalty was executed for accepting bribes because of his position. For many, they consider the punishment too severe for a corruption case, reported CNN.
The executed Huarong Official
Killed via the death penalty, Lai Xiaomin of China Huarong Asset Management was caught by drive-by Beijing to curb any graft and corruption. This is especially true with all state-owned corporations where any form of corruption is dealt with.
Except for Lai Xiaomin's execution, President Xi Jinping's campaign has instead placed others convicted in prison sentences. One more prominent conviction is China's former insurance regulator was jailed for 11 years.
Court of conviction and other crimes
Sources say that Lai, aged 58, was sentenced to the death penalty in a Tianjin court in eastern Beijing and executed later, said a government spokesman. According to the Second Intermediate People's Court of Tianjin that deliberated and decided on the case brought against Lai, a January verdict considered his guilt with a death sentence.
Crimes he was charged with are getting huge bribes for investing, constructing contracts for selected individuals, peddling influence, and lastly, favors provided.
Amassed wealth illegally over ten years
During the trial, sources found out that Lai got 1.8 billion yuan ($260 million) from his illegal activities for a longtime courtesy of his position. It gets worse with embezzlement of 25 million yuan ($4 million) and having a second family while still with his first spouse.
On state TV, it was mentioned that the executive jeopardized national financial security and financial stability from his highly illegal activities.
The state's commentary said he brought it on himself and it was deserved by the action taken.
Furthermore, many executions can be delayed for two years, and some are converted to life imprisonment. This one particular execution had no reprieve applied after the conviction of the chairman.
What is Huarong?
The China Huarong Asset Management Co. was formed in the 1990s tasked with buying nonperforming loans owned by government-owned banking institutions.
Lai and the Anti-Corruption watchdog
In 2018, he was a suspect for illegal activities and under watch by the Chinese Communist Party (CCP) and kicked out during the same period. He was called for public money misuse, organizing social banquets, sexual favors, and collecting bribe money, said the anti-corruption agency.
When his properties were entered to acquire evidence of large amounts of cash (millions of yuan), that is proof of his guilt, said Caixin reported in 2018.
Before execution
The condemned Lai Xiaomin, Huarong Chairman, had the last meeting with relatives before his execution ordered by Tianjin's court. He was not the only one caught but many more.