SHANGHAI: The head of a major State-owned enterprise embezzled more than 16 million yuan ($2.07 million), most of which he lost gambling in Hong Kong and Macao.
The embezzlement led to the company's bankruptcy, Shanghai No 2 Intermediate People's Court heard yesterday.
From 2003 to 2006 when Hu Jianping was the general manager of the Shanghai branch of China National Light Industry Group, more than 25 million yuan was siphoned from the company of which 16.39 million yuan was used to pay Hu's gambling debts in Hong Kong and Macao, the court was told.
According to Hu's travel record, he visited Hong Kong and Macao more than 30 times over a two-year period, and all of them were for short stays.
A witness surnamed Lin, with whom Hu often went to Macao to gamble, said Hu was an intrepid gambler. "It was very common for him to lose several million a day."
Another witness surnamed Cao, an employee of Casino Lisboa in Macao, said Hu borrowed a total of 9 million yuan from him. And Hu still owed Lin several millions.
Hu paid his gambling debts with his company's money, Lin said.
"Hu transferred 2.2 million yuan from his enterprise to a plastics company in Suzhou between March 17 and 28 to pay back a debt," Lin said. The Suzhou company is owned by a relative of a manager of Casino Lisboa.
Hu issued company checks using the excuse of business operations to pay his debts, Lin and Cao said.
Hu admitted to investigators he once paid a debt of 1 million yuan (about $130,000) with a guaranteed check issued by a company client.
Hu told the court he is proud of his gambling skills and admitted he often invited other players to watch him gamble.
"I wanted them to see how good I am at gambling," he told the court.
He said the reason he ended up in debt was due to bad luck.
According to a release from the court the Shanghai branch of China National Light Industry Group has gone bankrupt and its 20 employees have all been dismissed. Not a cent has been recovered.
Hu admitted to the court yesterday that he had used some of the company's money to pay his debts but not as much as he has been charged with. "Most of it was spent on company business."
No verdict was reached yesterday, but Hu could face life imprisonment according to the law.
In December last year, Zhang Jian, a deputy Party secretary of Desheng Town, Jiangsu Province, was sentenced to life imprisonment for embezzling more than 17 million yuan which he used for gambling abroad.
In August, 2001, Ma Xiangdong, deputy mayor of Shenyang, the capital city of Liaoning Province, was sentenced death for graft and embezzlement.
He had been to Macao 17 times over a period of two-and-a half years and had lost more than 10 million yuan in three days.
In April, 2001, deputy mayor of Xiamen, Fujian Province, was given a suspended death sentence for graft. He had lost 3.5 million yuan a day while gambling.
According to China News Agency, Macao casinos made more than 18 billion yuan in the first three months of this year.
Most of the gamblers were from the Chinese mainland, Hong Kong and Taiwan.
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