5 Aug 89

FE/0527 B2/12

Deyang, has been given a “recorded demerit" for taking an "over-lenient attitude toward the mistake of illegally purchasing saloon cars". (Zhongguo Xinwen She, Peking, in Chinese 0302 gmt 26 Jul 89)

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manager arrested for bezzlement Su Jinzhu, deputy manager of the Luohu district enterprise development company in Shenzhen was recently apprehended on suspicion of "embezzling huge amounts of public money". hen Jinzhu moved from Yingde county to Baoan county seven years ago, he was an ordinary peasant, but he now has nearly 2m yuan of personal

ts. He has 44 bank savings books with a total balance of 1.04m yuan, three Hongkong dollar savings books with a total balance of more than 12,000 Hongkong dollars and a luxury car. He owns a flat and a house in Shenzhen, and at and a shop in Hongkong. The procuratorial organ has impounded all of his bank passbooks. Su accumulated his personal assets through embezzling public money, forging bills and manipulating the books. holds a number of travel documents for Hongkong and Macao. (Zhongguo Tongaun She, Hongkong, in Chinese 0628 gmt 29 Jul 89)

Guangxi state-run enterprises guilty of "law-breaking speculative behaviour" As of 15 June 1989, of Guangxi Zhuang Autonomous Region's 7,829 companies which underwent economic improvement and rectification", 6,260 were allowed to continue in business, 296 were either merged into other companies, or had their enterprise status revoked. Thus 96.18% of the inspection work of cancelling, merging or retaining various kinds of companies was completed. Between the second half of last year and the end of this June, a total of 13,012 economic law-breaking cases were investigated and tackled, of which 831 cases were judged as speculation and profiteering", 99 being serious cases involving over 10,000 yuan. A total of 14,290,000 yuan was taken in fines or confiscated. The main perpetrators of "speculative activities” are now state-run enterprises and party and government organs. As many as 16 out of 19 such concerns have been found to be involved in “law-breaking speculative behaviour”. The regional industrial and commercial bureau has organised six task groups and special units, to be sent to localities such as Liuzhou, Yulin, Qinzhou, Hechi, Wuzhou and Nanning. (Zhongguo Xinwen She, Peking, in Chinese 0326 gmt 27 Jul 89)

Hunan mayor dismissed over fake pesticides Tang Zhenqiu, mayor of the city of Miluo in Hunan Province, has been dismissed for seriously neglecting his duty in tolerating the production and sale of fake pesticides by his subordinates. Further investigations are now under way to determine Tang's responsibility in the criminal case. The heads of eight factories have been taken into custody for further investigation. They have been fined 240,000 yuan. Six buildings and consumer goods such as motorcycles and electrical appliances built and bought with illicit gains have been confiscated. Some people related to the case have been given administrative disciplinary measures. Most of the 18 pesticide factories in Miluo did not have necessary facilities for producing pesticides, but the factories produced 5,700 t of fake pesticides and sold them to

SWB

131 counties in 17 provinces and autonomous regions throughout the country in 1988, "obtaining exorbitant profits". (Xinhua in English 1419 gmt 29 Jul 89)

Tibet's economic “rectification" unearths "illegal projects" In his government work report, Chairman Doje Dering revealed that Tibet has achieved initial success in economic improvement and rectification work since October 1988. Illegal funds totalling 52,870,000 yuan have been discovered and five companies shut down. Throughout Tibet an extensive drive to check on finances, taxes, and prices had been launched. Of the illegal funds, a sum of 18,260,000 yuan has already been turned over to the state. Some 571 capital construction projects had been screened, and 61 of them designated illegal projects not covered by plans; projects less than half completed have been shut down. Some 294 companies had been "screened and straightened out”. Five had been shut down and four "separated from government and the departments in charge”. (Lhasa, Tibet regional service 1030 gmt 29 Jul 89)

OTHER REPORTS

Tax administration takes measure to fight corruption (Text) Chinese taxation departments are banned from accepting gifts from tax-free and tax-reduced enterprises and units, Xinhua learned here today [Peking, 1st August]. This is one of ten measures worked out by the State Administration of Taxation to ensure an honest and clean government. Jin Xin, director of the administration, said that the 500,000 Chinese tax collectors should give this year's priority to keeping an honest and clean government, advocating hard work and plain living and combating corruption.

According to the ten measures, entertaining guests and sending gifts with public funds will be strictly controlled. When going to subordinate units for inspection, officials from the higher authorities shall not live in luxurious hotels, host banquets or send gifts. On the other hand, the subordinates are not allowed to send local specialities to their superiors when visiting the higher authorities for advice and reporting their work. Other measures include the banning of junkets, convening at scenic spots during the tour peak season and construction of luxurious office buildings and apartments. Bonuses, subsidies and allowances should not be given beyond standards. According to Director Jin, the implementation of the ten measures will be checked up every half a year. (Xinhua in English 1104 gmt 1 Aug 89)

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Ten killed in explosion in town in Guangdong violent explosion occurred on 1st August at a shop in the centre of (?Yunao), Fengkai county. Three shops in the vicinity collapsed immediately after the explosion. This was followed by a raging fire which destroyed 31 houses, seriously injured 36 people and killed 10. The explosion occurred at 0730 and the fire was extinguished at 2330. The cause of the "accident" is now under investigation. (Canton, Guangdong provincial service 1000 gmt 2 Aug 89)

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