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Official Falls from Grace on Illegal Nepotism

A high-ranking government official has been sacked from his job and thrown out of the Communist Party for abusing his position with illegal nepotism.

Liu Tao, vice-chairman of the city committee of Chinese People's Political Consultative Conference (CPPCC), and former Party deputy secretary of Shenzhen, has been dismissed from his post after being found guilty of using his office to benefit his family.

Liu had allegedly instructed four heads of state-owned enterprises to illegally give the development of a real estate project to his son's company in 2001.

The CPPCC said his son did not have the "qualifications for real estate development," but made over 20 million yuan (US$2.4 million) from the project.

To express his gratitude, his son gave 500,000 yuan (US$60,000) to Du Haicheng, head of one of the four companies colluding with his dad.

Money

Du accepted the money but later handed it back after he heard rumors of his involvement in the illegal deal.

But in October 2001 and April 2002, Du ran up huge gambling debts and accepted 1 million yuan (US$120,000) from Liu's son.

Du, the general manager of Shenzhen Zhenye Group Co was sentenced for eight years in prison for accepting 1.8 million yuan (US$218,000) last year following an earlier trial.

Liu Tao was also accused of accepting bribes and breaking the law in another real estate project, the Southern Metropolis News reported.

His fall from grace comes after reaching the top of his political career.

Liu Tao was promoted as vice-chairman of the Shenzhen committee of CPPCC in March 2002, and it was then that he started abusing his power.

(China Daily January 21, 2005)

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