Photo: Liu Zhijun at his trial on June 9, 2013
Source: Sina

July 8, 2013
Translated by Pang Lei

Liu Zhijun (劉志軍), the former Minister of Railways, who was removed from his position as the ministry's Communist Party Secretary in February 2011 on suspicion of "severe disciplinary violations," was sentenced to death with a 2-year reprieve by a Beijing court earlier today, according to a report carried by the official Xinhua News Agency.

Beijing's No. 2 Intermediate court sentenced the former railway official to death with a 2-year reprieve, which is normally commuted to a life sentence, on charges of accepting bribes. Liu was also stripped of his political rights for life and also had all his personal assets confiscated. On a second charge of abusing his position, Liu was sentenced to 10 years prison.

The case was be heard by the Beijing No.2 Intermediate People's Court last month.

Background on the Liu Zhijun Case

According to an earlier EO report, the Central Commission for Discipline Inspection (CCDI) decision to investigate Liu was connected to two other investigations into individuals with links to China's railway industry.

The first is that of a Shanxi businesswoman and philanthropist Ding Shumiao (丁書苗), who, according to a Caixin Media report, was taken away for investigation in January this year.

The other is that Luo Jinbao (羅金保), the former chairman of both the China Railway Container Transport Corp. Ltd. (CRCT) and the listed China Railway Tielong Container Logistics Co., Ltd.. The Economic Observer reported on the investigation into Luo Jinbao by the CCDI in early January 2011.

The cases revealed that corruption involving vast sums were present in China's high-speed rail sector, with almost 10 billion Chinese yuan involved and multiple listed companies implicated, the reprecussions led to a shake up in the organization of the country's railway system.

The EO has also learned that it was when Luo Jinbao's case was first uncovered by the CCDI that serious problems with corruption in the high-speed rail sector, including interference and illegal practice in the awarding of contracts and also the wanton acceptance of bribes, were exposed.

Links and Sources
Xinhua News Agency: 原鐵道部部長劉志軍受賄、濫用職權(quán)案一審宣判
Economic Observer Online: Corruption Trial of China\'s Former Railway Minister to Start Sunday
Economic Observer Online: Former Minister of Railways Corruption Case Lodged With Beijing Court
Economic Observer Online: What Brought China\'s Railway Minister Down?
Economic Observer Online: How Liu Zhijun Was Able to Get Away With it For So Long