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Could explain why Canada's real estate market keeps climbing? Doesn't bod well for the Communist Party either. Or maybe a way to convert worthless paper into hard assets? You tell me?
[I]Estimates by China's central bank that up to 18,000 corrupt officials have fled overseas with over $120 billion in stolen money in the last few years are undoubtedly well short of the truth.
The 68-page report by the People's Bank of China, dated 2008 and marked "confidential," was mistakenly posted on the bank's website a week ago and has since been removed.
But the analysis which cites specific examples of how corrupt officials and Communist party members have, since the mid 1990s channelled their illgotten gains into countries like Canada, the United States and Australia in return for resident status or citizenship, has caused uproar among Chinese netizens.
There are reports of at least eight new websites coming on line in China last week to provide forums for people wanting to express their anger at this and all other petty corruption that dogs the daily lives of Chinese people.
The authors of the report recognized the inflammatory nature of their analysis, especially as the Communist party prepares to select next year the fifth generation of leaders since its 1949 seizing of power.
Corruption, says the report, "is a direct threat to the clean politics structure of the Communist party and harms the foundations of its power."
The report says that for highranking party or government officials the U.S. is the favourite destination with Canada second and Australia third.
Lower-ranking officials without the same resources head for Thailand, Malaysia, Mongolia or Russia.
In many cases the stolen money is taken out through Hong Kong, where financial institutions have a long history and great expertise in moving money around the world out of sight of officialdom.
An earlier report from 2007 by the Chinese Academy of Social Science, the government's main in-house thinktank, tabulated the number of fleeing corrupt officials by province. Guangdong, just over the border from Hong Kong, was well ahead of second place Fuchien on the southern coast opposite Taiwan.
The central bank's report gives some specific examples of how corrupt officials operate.
It cites the case of a top politician, Cheng Kejie, who arranged for his mistress to live in Hong Kong and then transferred money to her.
In another case, Ministry of Finance official Xu Fangming simply placed large amounts of money in the bank account of his son studying abroad.
While there are examples of some officials leaving China with suitcases full of cash, laundering their loot through the casinos of Macau, or even using their credit cards to buy assets while abroad and then paying off the debts at home, most of the methods of money movement are far more sophisticated.
Most are disguised as business transactions between the enterprises run by officials in China and companies overseas. But often these overseas companies are fakes, set up by officials for the purposes of stealing and laundering money.
Another favourite scheme is not to repatriate profits made in overseas transactions and to sideline them into the personal foreign accounts of corrupt officials.
A 1999 report by the China Reform Foundation's National Economic Institute estimated that about 52 per cent of customs declarations were falsified so as to mask the retention of stolen money in overseas accounts.
The same report produced figures on capital flight which suggest the latest estimate by the central bank of $123 billion between the mid-1990s and 2008 is well shy of the truth.
The National Economic Institute report reckoned that in 1998 alone $48 billion was slipped out of the country.
The report, by the institute's director and noted economist Fan Gang, said that the technique of over-reporting imports and under-reporting exports was responsible alone for up to $20 billion a year in capital flight.
This raises the question why China's wealthiest people and the country's incipient middle class want to get their assets abroad and usually acquire another citizenship at the same time.
One is that there is no legal protection for private property in China, even for the best connected corrupt party cadres.
And the increased numbers in recent years in which wealthy Chinese are moving money abroad and getting second citizenships suggests a lack of faith in the strength of the country's economy, or the future of the Communist party, or both.
[/I]
Read more: [url]http://www.vancouversun.com/business/Corrupt+officials+flee+with+billion+report/5009904/story.html#ixzz1QgYcvW5m[/url]
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Jun 29th, 2011 01:04 PM #1
Corrupt Chinese officials flee with $120 billion
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Jun 29th, 2011 01:11 PM #2
And your point are?
You know what they said about corruption.
The first million is hard to get, anything after that is gravy train._______________
Originally Posted by Mark77
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Jun 29th, 2011 01:11 PM #3
Curious -- is the figure in Chinese yuan or American dollars? It would still amount to billions of dollars (18.5 billion USD) but it makes a tiny bit of difference.
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Jun 29th, 2011 01:16 PM #4
Guess he and his 7 generations are set for life. Too bad he only needs 6x3 piece of land - talk about human greed.
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Jun 29th, 2011 01:18 PM #5
I wouldn't mind if we landed this guy in Canada. He's loaded. If he tries to pull another scam, just confisticate all his assets.
In really, Canada only lands piss-poor refugees who squander the tax payer's money in endless legal aid and welfare.LOG IN TO THANK No one has yet thanked bullionaire for this post.
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Jun 29th, 2011 01:23 PM #6
Move along. Nothing to see here...
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Jun 29th, 2011 01:26 PM #7
As long as the money returns here in the form of investment, all is good. It was our money anyway.
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Jun 29th, 2011 01:33 PM #8
And... what part of this news is new? :D
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Jun 29th, 2011 02:13 PM #9
Not shocked at all, about time this made the news and undeniable evidence was found. The poor guy who mistakenly posted this document is probably being hung and shot at the same time.
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Jun 29th, 2011 02:27 PM #10Deal Guru
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Newly-rich Russians have been doing this for years, usually in very prominent ways like buying sports teams. By making themselves highly-visible it makes it difficult for the government at home to make them "vanish". It also helps them to establish residency elsewhere, where they and their ill-gotten gains are more secure.
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Jun 29th, 2011 02:29 PM #11
I think its shady for senior gov officials to have dual citizenship. Not just China, but even Canadian officials like PM, MPs, Premiers, etc. Anyone with the power to implement laws.
If you don't believe in your country enough to give up other Citizenships, you probably have no business running the country.
These folks know if crap hits the fan, they can just flee. But what about the average Joe (or Chan) on the street??_______________
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Jun 29th, 2011 02:39 PM #12
[QUOTE=45ED;13090874]Curious -- is the figure in Chinese yuan or American dollars? It would still amount to billions of dollars (18.5 billion USD) but it makes a tiny bit of difference.[/QUOTE]
I'm pretty sure its US dollars. That is the full article posted.
[QUOTE=whampoa;13090871]And your point are?[/quote]
You mean, my points are? Yeah, we all know about corruption in closed societies, but when it comes into the open in those society's is when thing become interesting.
[quote]You know what they said about corruption.
The first million is hard to get, anything after that is gravy train.[/QUOTE]
Yawza! Get me a ticket to the gravy train!Last edited by hagbard; Jun 29th, 2011 at 02:42 PM.
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Jun 29th, 2011 02:40 PM #13
[QUOTE=koalorka;13090943]As long as the money returns here in the form of investment, all is good. It was our money anyway.[/QUOTE]
I kind of thought this way for a while but have changed my position.
The stolen monies have probably prevented poor villagers from even the simplest infrastructure that a fast-growing economic power should have.
Closer to home, the stolen monies are buying up houses at prices that prevent honest working Canadians from attaining home ownership. It's one thing to lose a house to Bill Gates or a lottery winner, quite another if it's to an embezzler or a drug king, neither of whom will have paid a cent in taxes (another leg up to be in a position to outbid honest workers).LOG IN TO THANK No one has yet thanked ShopperfiendTO for this post.
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Jun 29th, 2011 02:51 PM #14
[QUOTE=koalorka;13090943]As long as the money returns here in the form of investment, all is good. It was our money anyway.[/QUOTE]
So, you think corrupt officials become honest businessmen after they cross the ocean? :facepalm:
Maybe we should call them "Modern Chinese Robin Hood" - steal from the evil communist party to give back to the hardworking Canadians/AmericansLast edited by sylpherware; Jun 29th, 2011 at 02:54 PM.
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Jun 29th, 2011 03:52 PM #15
[QUOTE=webdoctors;13091243]I think its shady for senior gov officials to have dual citizenship. Not just China, but even Canadian officials like PM, MPs, Premiers, etc. Anyone with the power to implement laws.
If you don't believe in your country enough to give up other Citizenships, you probably have no business running the country.
These folks know if crap hits the fan, they can just flee. But what about the average Joe (or Chan) on the street??[/QUOTE]
Our intrepid mayor Doug Ford comes to mind, though he has a Canadian mouthpiece to work through._______________
Could HAVE, not could OF. What does 'could of' even mean?LOG IN TO THANK No one has yet thanked Piro21 for this post.
