Financial \”revolving door\” corruption: Resigned officials are scrambled by companies

Chairman of China Renaissance Capital It has been more than 4 months since Bao Fan was taken away. On February 16, 2023, nine days after Bao Fan was detained, China Renaissance announced that Bao Fan had \”lost contact\”. On the 26th of the same month, it was announced again that Bao Fan was \”currently cooperating with the investigation by the relevant authorities of the People\’s Republic of China.\”

Bao Fan is under investigation. Some China Renaissance insiders believe that there is a high probability that it is related to his company president Jung Jung. Jungle was taken away by relevant departments in early September 2022.

Public information shows that before taking up his duties at China Renaissance, Jungle worked in the ICBC system for many years. Lin Lin joined ICBC in 1990 and successively worked in the credit department, sales department, international department and other departments of the head office. In 2007, he joined ICBC Financial Leasing Co., Ltd. as executive director and president. In 2016, he served as chairman and chief executive officer of ICBC International Holdings.

Shortly after Lin Lin joined ICBC International, he approved a US$200 million loan from China Renaissance in October 2017. According to China Renaissance\’s previous announcement, the loan was repaid in September 2018 after China Renaissance\’s Hong Kong stock market listing. Soon after the loan was repaid, Jungle accepted Bao Fan\’s invitation and left the ICBC system around 2020 to become the president of China Renaissance. Jungle transformed from an executive within the system into a China Renaissance executive with an annual salary of over 10 million.

On January 15, 2023, the Central Commission for Discipline Inspection and the State Supervision Commission published an article titled \”Breaking the Revolving Door of Banks and Enterprises\”, pointing out that crackdowns on banks and enterprises When executives are in office, they \”build nests in advance\” to seek benefits for credit customer companies. After leaving their jobs, they realize their power and receive high settlement allowances and salaries from credit customer companies. This is a revolving door type of corruption among banks and enterprises.

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Whether Bao Fan is under investigation is related to Jungle\’s \”profit transfer\” and whether Jungle is involved in \”revolving door corruption\” remains to be determined by the relevant agencies. However, as the anti-corruption struggle moves into deep waters, corruption patterns such as the \”revolving door\” in politics and business have been renovated, and the financial sector has become a \”hardest-hit area\” and a key target of financial anti-corruption.

Many interviewed experts told China News Weekly that finance is a typical power-concentrated, capital-intensive, resource-rich field, and it is easy for corruption problems to arise through the \”revolving door\” of politics and business. This type of hidden corruption must be attacked as soon as it appears to prevent incremental corruption. At the same time, we must also improve the system construction and promote the integrated promotion of those who dare not, cannot and do not want to corrupt.

Pursue the \”remaining warmth\” of power for profit

On April 4, 2022, Jiang Liming, the former director of the Supervision Department of Rural Small and Medium-sized Financial Institutions of the China Banking Regulatory Commission, was expelled from the party, the notice pointed out She is a typical example of \”escape resignation\” and the \”revolving door\” of politics and business.

Before Jiang Liming was investigated, in October 2021, the Fourth Central Inspection Team stationed at the China Banking and Insurance Regulatory Commission to conduct an inspection for about 2 months. On February 22, 2022, the Fourth Central Inspection Team reported to China The Party Committee of the China Banking and Insurance Regulatory Commission reported on the inspection situation and pointed out that \”the use of regulatory power for personal gain is common in the system, and the problem of the political and business \’revolving door\’ is quite prominent.\”

Before Jiang Liming was investigated, Cai Esheng, the former member of the Party Committee and Vice Chairman of the China Banking Regulatory Commission, was dismissed in July 2021. During Cai Esheng’s tenure as the former Vice Chairman of the Banking Regulatory Commission from December 2005 to June 2013, Jiang Liming is his subordinate.

In the Discipline Inspection Commission\’s report, in addition to \”escape resignation\”, Jiang Liming was also accused of being a \”revolving door\” in politics and business \”Typical. The \”revolving door\” in politics and business comes from the administrative term, which refers to the role of individuals in governmentThe two-way switching of roles between the department and the private sector is currently more commonly used to describe the transfer of unjust and illegal benefits. In the financial field, most of them occur in institutions such as regulatory agencies and banks.

\”Different from the traditional corruption of paying with one hand and doing things with the other, the \’revolving door\’ of politics and business will cause corruption to be cloaked in a legal guise, using legal business transactions to cover up the rent-seeking behavior of power behind it.\” Professor, School of Administration, Jilin University. Wang Lifeng, the first specially invited supervisor of the Jilin Provincial Commission for Discipline Inspection and Supervision, said.

Jiang Liming has more than 32 years of experience in financial regulatory agencies and banking system management. In November 2016, Jiang Liming resigned from public office and went to Evergrande Group as chief supervisor, and later as vice president of Evergrande Group. The 2019 annual report of Evergrande Group shows that Jiang Liming is the vice president of Evergrande Group and assists in the management of the group’s system funds.

In the more than four years that Jiang Liming has worked at Evergrande Group, the group\’s total debt has soared. In 2015, China Evergrande\’s total liabilities were 614.893 billion yuan; at the end of 2016, Evergrande\’s total liabilities were approximately 1.16 trillion yuan; by mid-2021, this number has risen to nearly 2 trillion yuan. The amount of borrowings also increased from 673.14 billion yuan in 2018 to 799.9 billion yuan in 2019.

The extent to which Jiang Liming, who is familiar with the financial system, will use her influence to help Evergrande solve its financial problems remains to be disclosed. On December 31, 2020, Jiang Liming resigned as Vice President of Evergrande. Soon after, in the third quarter of 2021, Evergrande’s capital chain was cut off.The crack surfaced.

\”After their escape resignation, most officials quickly changed their political and business roles. In fact, they retained the residual power to serve their monopoly of huge economic interests, because during their tenure, most of these leading cadres were in charge of one party. Controlling key departments and key areas,\” Wang Lifeng analyzed to China News Weekly.

Beijing Normal University School of Law professor Zhang Lei and others once stated in the article \”Lawfully Punishing Corruption Crimes Behind the \”Revolving Door\” of Politics and Business\” that in the \”revolving door\” of politics and business, public officials leave their jobs and go to companies related to their original work and business. Private enterprise workers The operation may be mainly suspected of two types of corruption. One is engaging in \”option corruption\” and accepting the benefits agreed upon when taking office in the name of \”receiving salary\”; the other is continuing to disseminate the \”remaining warmth\” of power and using the influence while in office to The organization he works for seeks benefits and accepts property.

\”What (enterprises) value is the connections and influence of retired cadres in the officialdom. Because they can establish relationships through these people, get to know some of the current leading cadres, and then ask them to do things and seek benefits.\” Industry insiders said.

Feng Henian, former party secretary and director of the Shandong Supervision Bureau of the China Securities Regulatory Commission, once held \”important power\” in the financial field. He is the first cadre from a central first-level financial unit to be dismissed this year and is accused of being a typical example of the \”revolving door\” between politics and business. Feng Henian resigned after working at the China Securities Regulatory Commission for 18 years. He has been serving as Party Secretary of Minsheng Securities Co., Ltd. since September 2015 and as Chairman since December of the same year. Taken away in early June 2022He was investigated and expelled from the party in January 2023.

The wording of the disciplinary notice against Feng Henian is also quite harsh, pointing out that Feng Henian actively planned a \”way out\” when he was in office, and continued to use his original position and status to make money after leaving his job; he used his original position and status to influence and interfere with the issuance review work, and was greedy and excessive. , the amount is extremely huge.

Zhu Yi, a former researcher of the Shanghai Supervision Bureau of the China Securities Regulatory Commission, is also engaged in corruption in the field of issuance review. From May 2012 to September 2017, he served as a member of the 14th, 15th and 16th Main Board Issuance Review Committee of the China Securities Regulatory Commission. The report pointed out that Zhu Yi used the issuance review power to seek improper benefits for others; he set up a nest in advance while in office, and quickly resigned as a member of the issuance review committee after his term expired.

Similar to Feng Henian, Zhu Yi took up important positions at a securities firm after his resignation. His resume shows that starting from August 2018, Zhu Yi has served as general manager of Guotai Junan Investment Bank, a leading securities firm, and is mainly responsible for IPO, refinancing and other businesses. He was investigated in November 2021 and expelled from the party in July 2022.

\”Brokerages like officials who have come from regulatory authorities, especially those with experience in issuance review. Because they understand the review rules and are familiar with the key points of IPO review, and can maintain good communication with the review layer through their own relationships. It also leaves hidden dangers for the \”revolving door\” because only when a company is successfully listed can securities firms receive full fees. It is inevitable that some securities firms will use their connections to resign the companies they sponsor at the issuance review committee meeting. Take care of and help them succeedListed. ” said the above-mentioned senior practitioner in the financial industry.

It is worth noting that Feng Henian and Jiang Liming were investigated in the same time and background. They were both \”dropped\” in February 2022, shortly after the eighth round of inspections of the 19th Central Committee completed the feedback. At that time, the inspection teams both proposed , the \”revolving door\” problem between politics and business in the China Banking and Insurance Regulatory Commission and China Securities Regulatory Commission is quite prominent.

From left to right: Jung Jung, former Chairman and Chief Executive Officer of ICBC International Holdings. Jiang Liming, former Director of the Supervision Department of Rural Small and Medium-sized Financial Institutions of China Banking Regulatory Commission. Huang Xi, Institutional Business Department of China Construction Bank Former General Manager. Zhang Huayu, former Deputy Secretary of the Party Committee and Vice President of China Everbright Bank

\”Revolving door\” corruption in banks and enterprises

Jiang Liming and Feng Henian were once leading cadres of the financial regulatory authorities, and they \”wandered\” around the business world with their remaining power. However, due to the intensive capital density of the banking industry, a branch of the \”revolving door\” has emerged in the industry – the \”revolving door\” of banks and enterprises. The persons involved in this case were not civil servants and had no administrative supervision powers, but they still made money through the influence of their positions. The case of Huang Xi, former general manager of the Institutional Business Department of China Construction Bank, is a classic case of the “revolving door” among banks and enterprises.

Huang Xi has worked at China Construction Bank for 32 years. In July 2018, she resigned as general manager of the institutional business department. One month later, she joined Tahoe Group Co., Ltd. as executive vice president, in charge of the treasury department. On May 11, 2022, Huang Xi, who had resigned nearly four years ago, was investigated and expelled from the party in November of the same year.

The disciplinary notice stated that Huang Xi \”built a nest in advance\” to seek benefits for credit customer companies when he was in office. After leaving his job, he \”realized his power\” and received high \”settlement allowance\” and salary from credit customer companies. He was a \”revolving door\” for banks and companies. \”A typical example of corruption.

Huang Xi is not the only one who has switched from the banking system to work in a real estate company. In June 2023, according to the Discipline Inspection and Supervision Team of the Central Commission for Discipline Inspection and the National Supervisory Commission at the China Development Bank and the Supervisory Committee of the Liaoning Provincial Commission for Discipline Inspection: Mao Juncai, the former Party Secretary and President of the Shanghai Branch of the China Development Bank, was suspected of serious violations of discipline and law and is currently undergoing inspection by the Central Commission for Discipline Inspection. Disciplinary review by the Discipline Inspection and Supervision Team of the Supervisory Committee at the China Development Bank and supervisory investigation by the Supervisory Committee of Panjin City, Liaoning Province. Mao Juncai previously served as executive president of Greenland Group.

Mao Juncai has served as deputy president of the Sichuan Branch of the China Development Bank, president of the Shaanxi Branch of the China Development Bank, and deputy secretary-general of the Shaanxi Provincial Government. , Director of the Provincial Finance Office, President of the Jiangsu Branch of the China Development Bank, President of the Shanghai Business Headquarters of the China Development Bank and President of the Shanghai Branch. It was not until 2017 that Mao Jun left China Development Bank and soon joined Greenland Group. On October 9, 2017, Greenland Holdings announced that Mao Juncai was officially appointed as executive vice president.

Judging from the expressions in the relevant notification, \”building a nest in advance\” to prepare for the \”realization of power\” after retirement is an important manifestation of the \”revolving door\”.

An article on the website of the Central Commission for Discipline Inspection and the National Supervisory Commission once disclosed a real case. The person involved served as party committee secretary and president of a provincial branch of the Industrial and Commercial Bank of China, and general manager of a department of the head office. In March 2016, he had not officially resigned from the bank. , relying on his connections and influence from leadership positions for many years, he contacted the chairman of a certain group through matchmaking, and served as the deputy leader of the preparatory group for the financial leasing company to be established by the group (not yet established) in order to obtain subsequent benefits.

Although the person involved in the case has resigned, he still uses his original background and influence to smoothen relationships with unscrupulous businessmen, obtain scarce credit resources, and seek huge profits from it. \”Although the bank\’s internal system is relatively strict, in reality the problem of intervening in loan issuance through greetings still exists.\” According to relevant personnel of the task force of the case, some cadres, due to the prestige of their former leaders or colleagues, go along with the flow to help handle business and go beyond the system. red line.

However, some people in the banking industry told \”China News Weekly\” that bank risk control is relatively strict, and it is normal for people to leave and have tea, unless they are personally If you are in a high position, you won\’t have that much \”energy\” otherwise. It is more likely that they started colluding with the company while still employed, mainly through credit enhancement, loan approval and other related businesses, and then sought huge profits after leaving the company.

For example, Zhang Huayu, former deputy secretary of the Party Committee and vice president of China Everbright Bank, served as deputy president of China Everbright Bank for 11 years. In September 2018, Zhang Huayu resigned as vice president. Since then, he has served as Party Committee Secretary and Chairman of Tongfang Guoxin Investment Holdings Co., Ltd., and Chongqing Trust Party Committee Secretary and Director. In July 2022, Zhang Huayu was expelled from the party. The disciplinary notice mentioned that Zhang Huayu sought benefits for relevant companies while he was in office. He resigned on the eve of his retirement. After resigning, he received high salaries from companies related to his original position.

Wang Lifeng said that the main characteristics of corruption in the \”revolving door\” of politics and business are diverse. Some officials build nests in advance, allowing both political and business circles to take advantage of them; others separate money and power transactions, mostly resulting in \”option-style corruption.\”

In addition, in the financial field, the \”revolving door\” of political and business corruption has a long incubation period, and the regulatory links are easily disconnected. Jiang Liming was dismissed nearly six years after her resignation. Feng Henian was investigated nearly seven years after he left the securities regulatory system. Zhu Yi, Huang Xi, and Zhang Huayu were all investigated and punished about four years after their resignations.

\”It is easy to supervise leading cadres during their term of office. Once they abandon politics and engage in business, with the change of status, it will be difficult for the disciplinary inspection and supervision departments to operate in the long term, and supervision will lag behind.\” Wang Lifeng said.

\”Revolving door\” will destroy market order

\”Unlike the two-way flow of the Western political and business revolving door, the Chinese political and business revolving door is basically a one-way flow,\” Chen Tianxiang, a professor at the School of Politics and Public Affairs Management of Sun Yat-sen University, told China News. Weekly\”, compared with officials resigning and changing identities, it is more difficult for businessmen to \”pivot\” into politics. Because joining the civil service system requires either examination selection or cadre transfer, but there is no institutional space for transfer from the non-public sector to the public sector in our country.

Judging from the notice of dismissal, the \”revolving door\” of politics and business in the financial sector is not only obvious in one-way flow, but also occurs frequently.

Zhuang Deshui, deputy director of the Integrity Construction Research Center of Peking University, analyzed that a \”revolving door\” is likely to occur wherever there is power. In recent years, as the financial field has become the focus of anti-corruption, the problems existing in this field have been dug out. Another reason is that the industry characteristics of the financial field and the operating characteristics of financial resources make it easier for leading cadres in the financial field to engage in \”revolving door\” corruption and seek illegitimate benefits.

The above-mentioned banking industry insiders told China News Weekly that there are a large number of people in the financial industry There are many financial transactions, there are many practitioners, and the needs are diverse. If you want to make a profit, you can find opportunities. At the same time, the types of financial institutions under supervision are diverse and large in number, and they are typical areas of concentrated power, intensive capital, and abundant resources.

Zhuang Deshui said that the reason why the political and business \”revolving door\” problem is so prominent in the financial field is that there are too many agents lurking in the industry. These people constantly change their identities, causing corruption to breed and spread.

\”The most prominent harm of the financial, political and business revolving door is that it will disrupt the order of the financial market. The most typical ones are bank loans, which provide preferential interest rates, or provide accommodation to companies that do not meet the conditions to help them obtain loans. . It also helps companies obtain financial licenses through illegal means, use connections and influence to obtain inside information, and make profits through transactions. In addition, it will also be involved in the fields of insurance and credit rating,” said the above-mentioned industry insider.

Huang Xi has worked hard in the China Construction Bank system for 32 years, and has worked in many important departments such as the corporate business department, group customer department, investment banking department, and institutional business department.

\”Huang Xi has deep connections in the financial field, and many companies are rushing to get him.\” Some media quoted him.Sources familiar with the matter reported. Only one month after Huang Xi \”farewelled\” to CCB, he joined Tahoe Group as executive vice president, in charge of the treasury department. In January 2019, Tahoe Group signed a strategic cooperation agreement with China Construction Bank Fujian Branch.

Tahoe Group executives have a deep connection with the CCB system. Chairman and General Manager Huang Qisen founded Tahoe Group in Fuzhou in 1996. Before that, Huang Qisen worked at the Fujian Branch of China Construction Bank for 8 years. Another executive, Lin Wenhua, vice president of Tahoe Group, had previously served as president of Fuzhou Chengbei Branch of China Construction Bank Fujian Branch. In addition to Huang Xi, Huang Qisen and Lin Wenhua were also taken away for investigation in the first half of 2022.

According to official news from the Supreme People\’s Procuratorate, Huang Xi was suspected of accepting bribes. In January 2023, under the designated jurisdiction of the Jilin Provincial People\’s Procuratorate, the Baicheng City People\’s Procuratorate filed a public prosecution with the Baicheng Intermediate People\’s Court in accordance with the law.

Baicheng City People\’s Procuratorate prosecuted and accused: The defendant Huang Xi took advantage of his position as general manager of China Construction Bank\’s investment banking department, asset management department, and institutional business department, as well as the convenient conditions formed by his authority or status to engage in corporate affairs. He has sought benefits for others in terms of credit rating, business development, personnel arrangements, etc., and has illegally accepted money from others many times, with extremely large amounts. He should be held criminally responsible for accepting bribes according to law.

Chen Tianxiang told China News Weekly that the \”revolving door\” of politics and business will lead to interests between officials and companies, leading to the failure of public policies. If this \”door\” is allowed to continueIf the situation continues, it will poison the official mentality of civil servants, encourage corporate management talents to cling to power, and poison their growth environment.

Establish a system \”firewall\”

In order to curb the \”revolving door\” corruption in politics and business, the \”Revolving Door\” corruption in politics and business was implemented in 2006. The Civil Servant Law of the People\’s Republic of China further standardizes the definition of the political and business \”revolving door\” and sets a three-year \”degaussing period\” for the power of civil servants who were formerly leading members.

\”Setting up a \’degaussing period\’ is conducive to reducing political and business \’revolving door\’ corruption from the source, and preventing \’option-style\’ corruption in which leading cadres use their power to make profits when they are in office and realize it after they leave or retire.\” What is important is that it can prevent leading cadres from using their dual identities to cover up their corrupt behavior and cover up improper transactions of money and power under reasonable business operations. Moreover, from the perspective of confidentiality, it is also conducive to protecting government information. Safe.\” Zhuang Deshui said.

As the risk of corruption in the “revolving door” of politics and business increases, attention is also being paid to the norms governing the resignation of party members and leading cadres.

In October 2013, the Organization Department of the Central Committee of the Communist Party of China issued the \”Opinions on Further Regulating Party and Government Leading Cadres\’ Part-time Jobs in Enterprises\” (referred to as \”Document No. 18\”), proposing to resign from public office or retire (leave). ) Within three years after taking leave, he shall not return to the area under the jurisdiction of his original position. and business scope, and shall not engage in profit-making activities related to the business under the jurisdiction of their original positions. In addition, the qualifications, age, remuneration, etc. of party and government leading cadres in the enterprise shall be determined. Strict restrictions

In the capital market, \”Document No. 18\” triggered a \”wave of resignations\” of independent directors of listed companies. According to incomplete statistics, in more than half a year after the regulations were announced, more than 250 independent directors voluntarily resigned, involving listed companies. nearly 300 There are many financial regulatory officials among these independent directors. For example, Zhou Daojiong, the former chairman of the China Securities Regulatory Commission, and Liu Nanyuan, the former deputy director of the Shenzhen Banking Regulatory Bureau, served as the independent director of Ping An Bank.

Ye Qing, associate professor at Nanjing University Business School, and others found in a 2016 study that compared with the resignation of ordinary independent directors, the resignation of official independent directors due to the \”No. 18 Document\” resulted in the company\’s market value falling by 5% before and after the announcement date. It fell more than 2% every day. Moreover, as the level of officials increased, the company\’s market value fell more sharply.

\”This means that the market not only knows that it is not easy for officials to be independent directors, but can also clearly identify the motivations behind officials of different levels. \’Energy\’ difference. \”Ye Qing told China News Weekly that the research did not find that official independent directors have superior performance in supervision and consultation. In fact, they are worse than ordinary independent directors. Therefore, this evidence means that the value of official independent directors is mainly It comes from the resource acquisition and rent-seeking functions brought by the official status, rather than the better supervision and advisory role.

\”From the market reaction, by curbing political and business The \’revolving door\’ should play a certain role in blocking rent-seeking channels, so it is a feasible strategy to curb official corruption at the institutional level,\” Ye Qing said.

Since 2017, normative documents for the re-employment of party members and leading cadres have been issued more intensively. That year, the Organization Department of the Central Committee of the Communist Party of China and other four departments issued the \”Opinions on Regulating the Employment Behavior of Civil Servants after Resigning from Public Office\”, requiring civil servants to truthfully report their employment destination when applying to resign from public office, sign a letter of commitment, and proactively report changes in employment within the employment restriction period. .

The newly revised \”Civil Service Law of the People\’s Republic of China\” in 2018 improved the regulations on employment restrictions after resignation. The scope of the three-year power \”degaussing period\” has been extended to \”civil servants holding leadership positions at or above the county level\” in addition to \”original leadership members\”. Some experts said that this measure can effectively curb the transfer of interests and has positive significance in preventing the \”revolving door\” corruption in politics and business.

However, the scope of the above series of regulations is limited to party members and civil servants, and there is no clear restriction on other personnel performing public duties. There are still opportunities for the \”revolving door\” of politics and business.

In March 2018, the Supervision Law of the People\’s Republic of China was officially implemented. superviseIn addition to civil servants and public management personnel, the targets include state-owned enterprise managers and other five categories of public officials who exercise public power, including leaders of state-owned financial institutions. The political and business \”revolving door\” space in the financial sector is further compressed.

In the past two years, the central government has repeatedly reiterated that it is not allowed to use the influence of one\’s position for profit, and has delved into the corruption problem behind the \”revolving door\” of politics and business. The Political Bureau meeting of the Central Committee in February 2022 emphasized that special rectification will be carried out to violate the spirit of the eight central regulations and the \”revolving door\” in politics and business.

At the Second Plenary Session of the 20th Central Commission for Discipline Inspection held in January 2023, Li Xi, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Secretary of the Central Commission for Discipline Inspection, pointed out that we should deepen the rectification of financial and other power concentration, capital intensity, and resource enrichment. Corruption in the field, and resolutely address the \”revolving door\” and \”escape resignation\” problems in politics and business.

\”The central government\’s clear request to rectify the \’revolving door\’ problem shows that this problem will give rise to a new type of corruption. Because of its hidden and latent nature, it is attracting more and more attention. At the same time, the central government is working hard to solve corruption at its source. problem, and the \’revolving door\’ corruption in politics and business is precisely the focus, which embodies the anti-corruption strategy of comprehensively addressing both the symptoms and root causes,\” Zhuang Deshui said.

The system still needs to be patched

At present, the \”revolving door\” in the financial field can easily lead to corruption problems. Many financial institutions also have institutional arrangements.

\”We have made some regulations in the early stage. If you leave directly from the China Banking and Insurance Regulatory Commission, you will definitely not be able to work in an institution that was subject to supervision in the past or an institution that was closely related to this industry. There are also restrictions on the confidentiality transition period and the declassification period.\” On the eve of the National Two Sessions in 2022, Guo Shuqing, the former chairman of the China Banking and Insurance Regulatory Commission, said.

Banks have also begun to increase their efforts to break the \”revolving door\” between banks and enterprises. For example, the Bank of China investigated the whereabouts of 6,510 employees who left the bank, and ordered officials involved in the \”revolving door\” of banks and enterprises to terminate their employment relationships with relevant enterprises within a time limit, and to terminate the business cooperation between Bank of China and relevant enterprises.

However, the aforementioned industry insiders told China News Weekly that there are still many people in the financial world who are outside supervision and make profits through the \”revolving door\”. \”There are regulations now that prohibit working in companies. But some people will serve as consultants. The company will not give a letter of appointment, but will give them salary as consultants. In addition, there are also people who seek interests in the company through family members and interested parties. These are investigated It’s all difficult.”

Zhuang Deshui also said that the \”revolving door\” of politics and business is a difficult problem, not only in China, also in the world.

\”The \’revolving door\’ corruption behavior in politics and business reflects that the traditional supervision model cannot achieve long-term supervision and full-process supervision because the supervision cost is too high, the supervision cycle is too long, and once the supervision chain is discontinuous, Corrupt elements will take advantage of loopholes and take advantage of the situation,\” Wang Lifeng said.

Wang Lifeng further stated that the existing party discipline and state laws still have institutional shortcomings in punishing this new type of corruption. The institutional system to effectively prevent the \”revolving door\” still needs to be further improved. The existing regulations only highlight the short-term effects. However, long-term options corruption still cannot be effectively regulated. In addition, existing regulatory technologies and methods still need to be improved. Faced with the secretive and long-term nature of new corruption, more scientific and technological means are needed.

Zhuang Deshui analyzed that there is currently a lack of effective information on public officials, including leading cadres, and there is a lack of substantive supervision measures for their post-employment behavior.

Mao Zhaohui, executive director of the China Supervisory Society and director of the Anti-Corruption and Integrity Policy Research Center of Renmin University of China, once said in an interview with China News Weekly that in reality, many places do not strictly implement the provisions of \”Document No. 18\”. After such personnel leave their posts, when they go to deal with their original units, there is no requirement that they need to report to their original units in advance.

\”The current laws and regulations regulating the \’revolving door\’ of politics and business are obviously fragmented and lack systematic and specialized legal provisions. \”Li Chunhua, associate professor at the Xi\’an Campus of the National Defense University School of Political Science, said in the article \”Dismantling the \”Revolving Door\” of Politics and Business and Reshaping Regulations on the Exit of Civil Servants.\”

Li Chunhua gave an example. Although some resigned civil servants did not work in the company, they still maintained a benefit transfer relationship with the company. For example, the company consulted them on relevant issues. Such issues were not covered by the \”People\’s Republic of China\”. It is clearly stipulated in the Civil Servant Law of the Republic. In addition, the punitive measures for resigned civil servants who violate regulations are also weak in operability. The boundaries of the rights and responsibilities of the involved punishment subjects are unclear, which may lead to mutual blame-shifting.

The Civil Servant Law of the People\’s Republic of China stipulates that if a civil servant resigns from public office or commits a violation of the provisions of the preceding paragraph after retiring, the receiving unit shall, depending on the severity of the case, impose a fine of not less than one time but not more than five times the illegal income of the punished person. . Chen Tianxiang believes that this provision is obviously too light in punishment, the cost of violating the law is too low, and it cannot have the proper deterrent effect. The principle of moderate strictness should be adopted to revise and improve the legal provisions on penalties for illegal employment as soon as possible.

Many interviewed experts told China News Weekly that the \”revolving door\” of politics and business itself is a manifestation of the conflict of interests among civil servants. Improving the mechanism for conflicts of interest among civil servants is an important means to effectively regulate them.

Zhang Lei believes that we can refer to extraterritorial legislation to introduce the preventive \”revolving door\” conflict of interest crime, consider early intervention of the criminal law, and make serious violations of the \”revolving door\” provisions a crime by resigned public officials. It is closely linked with other party discipline and state laws to form a long-term deterrent to resigning public officials and curb \”revolving door\” corruption crimes from the source.

In addition, Wang Lifeng said that some corrupt elements use digital payments to replace cash transactions on online platforms to evade supervision, and some use shadow companies, anonymous shareholders, etc. to evade audit supervision. To rectify the \”revolving door\” problem in politics and business, we must Improve anti-corruption technology, take advantage of modern information technology, dig out hidden clues in the process of data connection and integration, conduct comprehensive investigations, and compare massive data to find clues to problems.

\”Corruption and Anti-Corruption The struggle is long and protracted. The “revolving door” of politics and business will also take on new forms of variation. Faced with new corruption phenomena, we must attack them as soon as they appear to prevent incremental corruption. \”Wang Lifeng said.

Published in the 1097th issue of \”China News Weekly\” magazine on June 26, 2023

Magazine title: Containing the financial \”revolving door\”

Reporter: Halik