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Former executive VP at FAW-VW sentenced to life imprisonment

Shi Tao, the former executive vice president of FAW-Volkswagen Sales Co., was recently sentenced to life imprisonment.

A court in Baishan, Jilin Province, found Shi guilty of receiving bribes from 48 sources between 1998 and 2013 for a total of ¥33 million ($5.3 million). In addition, another ¥26 million worth of assets under his name were found to be of unknown origin.

Briberies came mainly from two types of companies: advertising firms and car dealers. According to O&R Communication Group responsible for the Jetta brand’s marketing, bribery to Shi was necessary because any advertising spending at FAW-Volkswagen “must be approved with his signature.” The chairman of Beijing Maiwei Information Consulting Co. paid ¥4.86 million for a piece of real estate for Shi, the largest single payment of the 48 briberies.

The smallest amount of bribery was ¥150,000 in cash paid by Liu Moubing, vice president of AirMedia Group Inc. According to Liu’s testimony, Shi solicited bribes by insinuating he found issues in AirMedia’s revenue report. During three different meetings with Shi from 2011 to 2012, Liu gave Shi ¥50,000 in cash each time. Liu said that after these payments, Shi no longer took issue with his company’s operation.

In a similar fashion, the general manager of a public relation company Snow Communications, a Mr. Tian, gave Shi ¥1.2 million in cash. In return, Shi approved all of the company’s PR proposals and budgets. Snow Communications’ businesses with FAW-Volkswagen grew year by year.

The largest bribery out of the 48 cases came from Beijing Maiwei Information Consulting Co. which paid ¥4.86 million for Shi’s real estate mansion in Beijing. As a result, its business with FAW-Volkswagen from 2008 to 2013 went up to 46 percent of its total business volume, achieving total operating revenue of over ¥51 million.

List of the 48 companies involved in Shi Tao bribery:

Investor at O&R Communications Group: 6 payments, 2010-2011, ¥2,399,999 and €3,000

Investor at Snow Communication: 3 payments, 2012-2013, ¥2.2 million

Chairman of Tianyi Shaanxi Auto Sales and Service: 9 payments, 2007-2012, ¥1.88 million

Chairman of Zhuangzhou Jinzhong Automobile Sales: October 2011, ¥1 million

Chairman of Beijing DMG Entertainment Media: February 2010, ¥1 million

Chairman of Beijing Maiwei Information Consulting Co.: 2007-2010, ¥4,861,262.09

Anshan Nakata Auto Trade & Diyin Auto Sales and Service: September 2007, ¥700,000 down payment for a mansion

President of Beijing Jieyatai Auto Sales: 6 payments, 2007-2011, ¥935,000

President of Beijing Daguan Zhanchuang Exhibition: 2 payments, 2011-2012, ¥600,000

Chairman of Changchun GI Group: 3 payments, 2010-2011, ¥550,000

Chairman of Beijing Haichen Hengye Media Advertising: 3 payments, 2011-2012, ¥550,000

President of Shanxi Dachang Automobile: 4 payments, 2011-2012, ¥720,000 and $10,000

Chairman of Mingzhong Automobile Sales and Service: 3 times, 2010-2011, ¥600,000 and 800 grams of gold

Energy Source Multimedia Technology: 2011, ¥500,000

Beijing Voyage Media: 3 payments, 2010-2011, ¥400,000

Chairman, Changchun Yuanchuang Tongmeng Advertising: 3 payments, 2010-2012, ¥400,000 and a ¥54,000 home theater system

Chairman of Hubei Hengxin Delong Auto Investment: 2 payments, 2010-2012, ¥400,000

Executive director of Pangda Group’s Beijing Jidongfeng Auto Sales and Service: 2 payments, 2010-2012, ¥530,000 and $10,000

Chairman of Shenzhen Chinese Media Operations Management: 5 payments, 2009-2012, ¥500,000

Chairman of Fujian Longyan Litai Building Materials: end of 2009, €20,000

Chairman of Shaanxi Yingzhijie Automobile Sales: 6 payments, 2008-2012, ¥300,000

President of Dalian Auto Trade Group’s Auto Sales and Service: 2008-2011, ¥380,000

President of Shanghai Huaxing Zhongjie Auto Sales and Service: 2011, ¥250,000

Chairman of Inner Mongolia Bayanzhuoer Hanghai Auto Sales and Service: 5 payments, 2009-2011, ¥180,000

Zhejiang Tongxiang Bozhong Auto Sales and Service: September 2010, ¥200,000

President of Jilin Shenhua Auto Sales and Service: 2 payments, 2009-2011, ¥200,000

Vice president, AirMedia Inc. North China District: 3 payments, 2011-2012, ¥150,000

President of Dongying Pandeng Imported Auto Repairs: 2 payments, 2010-2012, ¥150,000

President of Nanjing Xiezhong Automobile: 3 payments, 2009-2011, ¥160,000

Chairman of Tianjin Jietong Auto Sales: 2 payments, 2010-2011, ¥100,000 and $5,000

President of Jilin Ruiqi Technology Trade: 2 payments, 2010, ¥200,000

Chairman of Beijing Hailian Litong Trade: 2 payments, 2010-2011, ¥150,000

Shandong Jinbaoli Auto Sales and Service: 3 payments, 2009-2011, ¥180,000

Vice president of Rui’an Guorong Auto Repairs and Service: 2 payments, 2010-2011, ¥120,000

Chairman of Fuzhou Yonglitong Auto Sales: 2 payments, 2008-2013, ¥150,000

Chairman of Henan Dahang Auto Group: 2011, ¥80,000

President of Jilin Petroleum Equipment Automobile: 2010-2012, ¥90,000

Chairman of Luomoumou Bole Automobile: 2010, $20,000

Chairman of Inner Mongolia Erdos Xin’an Jiye Auto Sales: 2011, €10,000

Legal Rep. of Liaoning Huihua Automobile: 1998-1999, ¥350,000 and $10,000

Chairman of Zibo Weida Changqi Auto Sales: 5 payments, 2009-2010, ¥190,000

President of Qingdao Chunyu Yangguang Advertising Media: 3 payments, 2009-2012, ¥240,000

Chairman of Anhui Zhongli Auto Sales and Service: 2 payments, 2010-2011, ¥200,000

President of Harbin FAW Senhua Auto Sales: 2008-2012, ¥50,000

Chairman of Changchun Tongli Auto Trade: 7 payments, 2003-2009, ¥80,000

Chairman of Dalian Jieshida Auto Sales and Service: 2008-2013, ¥42,000 and €10,000

President of Sichuan Timeshare Media: 11 payments, 2009-2012, ¥3.85 million

Former chairman of Dalian NST Co.: 2010-2012, ¥1 million worth shares and ¥3.1 million profit.

(Rewritten by Kevin Wang based on author’s article published in Fazhi Wanbao or Rule of Law Evening News)

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