CHINA / SOCIETY
Former senior disciplinary inspector at China Tobacco sacked for using ‘shadow companies’ and ‘revolving door’ to seek illegal profits
Published: Dec 19, 2021 11:07 PM
Police in Daishan county, East China's Zhejiang Province, count smuggled cigarettes on Wednesday. Local police, local customs and tobacco bureau solved a cigarette smuggling case, detained 29 suspects and seized 230,000 cartons of cigarettes worth 50 million yuan ($7.6 million). Photo: VCG

Police in Daishan county, East China's Zhejiang Province, count smuggled cigarettes on Wednesday. Local police, local customs and tobacco bureau solved a cigarette smuggling case, detained 29 suspects and seized 230,000 cartons of cigarettes worth 50 million yuan ($7.6 million). Photo: VCG


 
China's disciplinary watchdog revealed details of the case of Pan Jiahua, former head of the discipline inspection team dispatched by the watchdog to the China Tobacco Corporation, saying that he was sacked for serious violation of discipline and law as he is suspected of using "shadow companies" and the "revolving door" to seek illegal profits for himself and his family. 

It is believed to be the first time that the Communist Party of China (CPC) Central Commission for Discipline Inspection (CCDI) has exposed these details. The disclosure comes from an article written by the CCDI in the magazine The China Discipline Inspection and Supervision. The article said that in the first half of 2021, the discipline inspection and supervision departments across the country have criticized, punished, and educated more than 12,000 discipline inspection officials. More than 1,300 were given Party discipline and administrative sanctions, and more than 50 people were transferred to prosecutors as they were suspected of committing crimes.

According to a report published by the Xinhua News Agency earlier that some people use their official backgrounds to work for companies and other interest groups, a phenomenon known as the "revolving door" in the West. After the "rotation" of retired senior officials, they are likely to use their inside information and contacts accumulated during their tenure as public officials to make profits in their new posts. If these officials are in office to look for ways to profit later, it is likely to influence their decisions.

Pan served as a member of the China Tobacco's Party Committee and head of the discipline inspection team of the CCDI in the corporation from January 2005 until he was removed from his post in November 2012. 

According to a notice posted on the website of the CCDI in November, Pan has lost his ideals and convictions, betrayed the responsibilities and duties he was entrusted with, and desecrated his position as a disciplinary inspector by engaging in discipline-violating activities.

He has abused his position to seek benefits for owners of private tobacco businesses, taken overseas trips sponsored by private business owners, and arranged jobs for relatives and friends in the tobacco industry. He also allowed his relatives to use his influence to profit from tobacco business, accepting a huge amount of money and valuables in return for securing interests for others in business operations, according to the CCDI.

Global Times