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The corruption of China's Vice-Premier
Mu Muying, Special to the Epoch Times
8/28/2004

In the fight against corruption, one committee member of the Central Political Bureau and Vice-Premier of the State Council, Hui Liangyu, has been exposed in a scandal which occurred during his time serving in the CCP in Anhui and Jiangsu Provinces. Hui has vainly attempted to label this scandal case, currently under examination, as a “false investigation” so as to mislead people and to get away with his crimes.

Currently the Central Political Bureau has already approved the Central Disciplinary Committee's initial suggestion on dealing with the matter: charge Hui with the task of both doing work and taking a critical look at himself.

Hui's problems came about when he was serving as Provincial Governor and Provincial Party Committee Secretary of Anhui and Jiangsu Provinces.

Receiving The Admiration of Jiang Zemin and Li Lanqing

During the nine years when Hui served has head of Anhui and Jiangsu Provinces, seven of those years he was awarded the title of "outstanding party member," and five years he was considered an "advanced provincial Party committee group leader." Especially during his tenure as head of Jiangsu Province, then-secretary general, Jiang Zemin, and Standing Committee Member of the Political Bureau, Li Lanqing, looked on him with glowing admiration. Perhaps this was because all three hailed from Jiangsu Province. On one occasion, in front of 100 people, Jiang said, "Hui Liangyu is a true leading cadre. He doesn't deal with mere formalities or give out special privileges, and puts a lot of effort into his work.... Hui Liangyu is a dutiful and serious cadre." Li also showered praise on Hui, "If we are to construct the economy and proceed with the reforms and opening up, we urgently need the services of people like Hui Liangyu. He doesn't just feign compliance." Li later had Hui promoted to Vice-Premier of the State Council.

Superiors Borrow Money, Cause 30 Billion Yuan in Property Debts

At the end of last year, when Hui's scandal broke out, the Investigation Team of the Central Finance Working Committee in Anhui and Jiangsu discovered that there were over 430 cases of borrowed money, bad assets, and poor record keeping that added up to a total of 92.27 billion yuan (US$11 billion roughly). All of these were a result of orders from the Provincial Governors and Secretaries. Among these, Hui, was responsible for 37 cases from his tenure as Governor of Anhui Province and 115 cases from his three-plus years as provincial Party committee secretary of Jiangsu Province. The total cost of these added up to 28.8 billion yuan (US$3.6 billion). Yet Hui was only charged with "carelessness and negligence" as a result.

Slush Funds and Hao Zhai

At the end of March, 2004 the Central Disciplinary Committee and the Central Finance Working Committee adopted a method of capturing and sealing off slush funds in order to "investigate" them. Their findings showed that the Jiangsu Party committee and government had nearly 20 slush funds between them, all under anonymous accounts. The funds' total exceeded 820 million yuan (US$9.9 million).

Amongst these, the Jiangsu Party committee's general office had three slush funds. One of them belonged to Hui Liangyu himself. It was titled, “Elm,” after the county of Hui’s birth, and contained over 30 million yuan (US$3.6 million). When trying to explain his reasons for having the fund, Hui claimed that the money in the "Elm" account was being deposited for later use in paying the medical expenses of and giving welfare subsidies to veteran cadres.

Later on, the Central Disciplinary Committee and other auditors did another investigation to the origin of money sent to the "Senior Officials' Construction Project" Fund set up in Jiangsu Province. They found that the funds were diverted from land tax revenues and embezzled in order to construct a 125-building, luxurious villa at Taihu Lake, located between Jiangsu and Zhejiang Provinces. The amount of 330 million yuan (US$39.9 million) went into the construction of the villa. In addition, Hui himself possesses a villa with a surface area of over 500 square meters.

Bragging About "Caring Less" About Money

It is reported that during political reports or in regular organizational activities, Hui is quite fond of flaunting himself. He often shamelessly boasts, "I have no interest in money or high-class goods. Most of the time when I'm on holidays with my family or colleagues, I'm satisfied with just making a few dishes of food and drinking a bit of spirits.”

The truth is quite the opposite. When Hui left Jiangsu province to go to Beijing and serve as Vice-Premier, he often drew upon the "Elm" slush fund he had built up. In merely over a year since arriving in Beijing, he had taken 3.5 million yuan from his fund. During his investigation Hui claimed that these funds were used to subsidize retired and recuperating comrades. In fact, only 500,000 yuan (US$60,409) were used for the claimed expenses; the other 3 million (US$362,454) was used to construct a villa of over 400 square meters in surface area at a scenic area on Huangshan Mountain. The cost of the land, labor, and interior renovations all came from funds raised by social activities initiated by the Anhui Provincial government. Hui himself merely pitched in 2000 yuan (US$241), not enough money to even pay the villa's management expenses for a half-year. Currently he has rented the villa out to the Tourism Bureau in the name of a certain government office, and 280,000 yuan (US$337,810) in rental fees fall into his pocket every year.

The "Senior Officials' Construction Project" And The Gifts Hui Has Received

According to Hui's explanations, before arriving in Beijing he had dealt with all of the gifts and cash he had received during his posts in Anhui and Jiangsu. He claims that he left the gifts in (the waiting room of his secretary's office) and put the cash gifts in his slush fun, and that the cash was used for assisting others in traveling abroad to study, purchasing residences and for medical expenses. As for the origin of the gifts, Hui claims that they came from national celebration activities and donations given to the provincial committee and governments from business interests.

It was also verified that from 1995 until 1998, when Hui served as Vice-Governor and Governor of Anhui Province, he approved diverting land taxes for use in paying for welfare for senior cadres. When finances were tight he diverted money from capital construction and agriculture to establish the fund, which instead was used to build an area of villas at Huangshan Mountain for senior officials.

In the year 2000, when Hui went to Jiangsu to serve as General Secretary, he constructed a set of European-style villas in Suzhou and Lake Taihu for each of the Political Bureau's committee members and standing committee members, symbolically selling them the villas for 5,000 yuan each. At that time, then-Premier Zhu Rongji strongly rebuked Hui, saying: "You are trying to destroy the clean reputation I've enjoyed throughout my life!"

Hui's Five Years in Jiangsu Province

It has been verified that from 1998 to 2002, the improvement of citizens' financial conditions in Jiangsu Province was falsified. Moreover, for those five years, funds were embezzled to start a fund for high cadres' "earned incomes." Despite the Jiangsu government not being able to meet its quotas for reducing poverty, it still engaged in creating construction projects for "achievement awards" and for senior officials. In the three years that Hui was in charge of Jiangsu, he spent 150 million yuan (US$18.1 million) on construction projects for senior officials. Even a man like Hui, who only holds a technical school degree, was going around like a well-learned man, writing notes of commemoration in more than 200 locations.

Hui Liangyu's False Education Record

Hui's reported formal school record goes as far as a university degree, and his official job title is "economist." Yet his school record has already been exposed as being falsified. It is said that in July 1990, before he held a position in the Central Policy Studies Center, Jilin Province gave him the honorary title of "economist." As for his university studies, he merely took some chemistry classes at Jilin University, and has no diploma to call his own. At the beginning of this year the Central Organizational Section ordered the investigatioin and rectifying of false education records and job titles. Hui's correct schooling record goes no farther than a polytechnical education.

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