Chinese prosecutors say the former Communist Party leader of Hangzhou, the eastern city that’s home to Ant Group Co. and Alibaba Group Holding Ltd., took nearly $28 million in bribes over a two-decade career.
(Bloomberg) — Chinese prosecutors say the former Communist Party leader of Hangzhou, the eastern city that’s home to Ant Group Co. and Alibaba Group Holding Ltd., took nearly $28 million in bribes over a two-decade career.
Zhou Jiangyong, 55, pleaded guilty in the case that prosecutors say involved some 193 million yuan netted while serving in various posts from 2001 to 2021, state broadcaster China Central Television reported.
He “provided favors in construction projects, contracts and land-use approval” in exchange for bribes, prosecutors in Chuzhou, a separate eastern city, said Thursday. Zhou was earlier linked to Ant, though prosecutors didn’t name the fintech company or Alibaba.
Zhou likely faces life in prison or a suspended death sentence considering recent corruption cases involving similar sums. He’ll be sentenced at a later date.
Beijing launched a sweeping crackdown on the private sector in late 2020 by forcing Ant to scrap what would have been the world’s largest initial public offering. That scrutiny later expanded to almost every sector of the internet, from e-commerce to social media, and ensnared many of the country’s largest companies, including Alibaba.
Read: Ant Holdings Link Fintech to Fallen Hangzhou Party Boss: Report
Last year, Zhou became the first cadre to be ousted from the party over corruption charges relating to the “disorderly expansion of capital,” a slogan central to President Xi Jinping’s crackdown on tech companies.
Zhou earlier appeared in a state media documentary that claimed the former party secretary of Hangzhou used his influence to help his younger brother’s businesses. One of those companies received investment from a firm controlled by Ant, local media reported.
It’s unclear whether Zhou’s prosecution will have any wider implications for Hangzhou — a city just a few hours from Shanghai that has a reputation for fostering private enterprise. Jack Ma’s Ant is working on reviving its IPO though that may not happen this year, Bloomberg News has reported.
Xi has pursued a sweeping and unprecedented campaign to root out graft within the party ruling some 1.4 billion people that both legitimizes his government in the eyes of a public weary of official corruption while also tamping down internal dissent.
Xi has indicated that the anti-graft campaign that has ensnared millions of officials will continue well into his third term. The drive has also targeted the financial system and the semiconductor industry, as the leadership became frustrated with failures in efforts to boost self-reliance in high-end chip production.
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