Identifier
Created
Classification
Origin
09SHANGHAI168
2009-04-14 07:47:00
CONFIDENTIAL
Consulate Shanghai
Cable title:  

GRAB THE TIGER BY THE TAIL: ONLINE REPORTS OF CORRUPTION ON

Tags:  PGOV PHUM TINT SOCI ETTC EFIN CH 
pdf how-to read a cable
R 140747Z APR 09
FM AMCONSUL SHANGHAI
TO SECSTATE WASHDC 7829
INFO AMEMBASSY BEIJING 
AMCONSUL CHENGDU 
AMCONSUL GUANGZHOU 
AMCONSUL HONG KONG 
NSC WASHINGTON DC
AMEMBASSY SEOUL 
AMCONSUL SHENYANG 
AIT TAIPEI 1689
AMEMBASSY TOKYO 
AMCONSUL SHANGHAI
C O N F I D E N T I A L SHANGHAI 000168 


STATE FOR EAP/CM, INR AND DRL
STATE FOR R - MARK DAVIDSON
STATE FOR EAP/PD - NIDA EMMONS
STATE FOR IIP/EAP - ROBERT HOLDEN
NSC FOR LOI, KUCHTA-HELBLING

E.O. 12958: DECL: 4/14/2034
TAGS: PGOV PHUM TINT SOCI ETTC EFIN CH
SUBJECT: GRAB THE TIGER BY THE TAIL: ONLINE REPORTS OF CORRUPTION ON
THE RISE IN EAST CHINA

REF: A. (A) 08 SHANGHAI 505

B. (B) 06 SHANGHAI 6344 AND PREVIOUS

C. (C) 08 SHANGHAI 494

D. (D) 08 SHANGHAI 471

E. (E) SHANGHAI 149

F. (F) 08 SHANGHAI 540

G. (G) 08 SHANGHAI 527

H. (H) 08 BEIJING 4522

CLASSIFIED BY: CHRISTOPHER BEEDE, POL/ECON CHIEF, U.S. CONSULATE
SHANGHAI, U.S. DEPARTMENT OF STATE.
REASON: 1.4 (b),(d)


Summary
-------

C O N F I D E N T I A L SHANGHAI 000168


STATE FOR EAP/CM, INR AND DRL
STATE FOR R - MARK DAVIDSON
STATE FOR EAP/PD - NIDA EMMONS
STATE FOR IIP/EAP - ROBERT HOLDEN
NSC FOR LOI, KUCHTA-HELBLING

E.O. 12958: DECL: 4/14/2034
TAGS: PGOV PHUM TINT SOCI ETTC EFIN CH
SUBJECT: GRAB THE TIGER BY THE TAIL: ONLINE REPORTS OF CORRUPTION ON
THE RISE IN EAST CHINA

REF: A. (A) 08 SHANGHAI 505

B. (B) 06 SHANGHAI 6344 AND PREVIOUS

C. (C) 08 SHANGHAI 494

D. (D) 08 SHANGHAI 471

E. (E) SHANGHAI 149

F. (F) 08 SHANGHAI 540

G. (G) 08 SHANGHAI 527

H. (H) 08 BEIJING 4522

CLASSIFIED BY: CHRISTOPHER BEEDE, POL/ECON CHIEF, U.S. CONSULATE
SHANGHAI, U.S. DEPARTMENT OF STATE.
REASON: 1.4 (b),(d)


Summary
--------------


1. (C) Summary: Online reports of corruption in East China
appear to have increased over the past year. In particular,
"Human Flesh Search Engines," where netizens post derogatory
information about local government officials, are attracting
greater public attention in East China. While East China
netizens continue to post reports detailing the corrupt
practices of local officials, our contacts said, online
criticism of the Central Government remains strictly controlled.
East China officials, including Shanghai's Party Secretary,
also co-opt the internet through webchats or by posting letters
online to shape public opinion. Several contacts expressed
concern that a lack of rule of law in East China provides
average citizens with few options to vent their frustrations,
leaving posting blogs about corruption as their only viable
alternative. End Summary.


2. (C) An analysis of online media reports and blogs on
corruption cases involving officials in Shanghai's Consular
District (which includes Jiangsu, Zhejiang, and Anhui Provinces)
provides anecdotal evidence that the number of reported cases in
East China is increasing. (Note: A partial list of recent East
China cases is included in the appendix in para 15 below. End
Note.) Discussions with Shanghai-based political reformers,
legal scholars, and internet experts underscored the growing
significance of the internet as a tool to combat corruption in
East China.

East China Netizens Reporting on Corrupt "Tigers"

-------------- ---


3. (C) Consulate contacts claim that the internet is making an
increasingly significant contribution to the development of
civil society in East China. Wang Xiaoyu, a Charter 08
signatory and a professor at Tongji University, told PolOff and
ConOff on March 10 that netizens typically do not bother to post
information online about the petty corruption of low-level
officials but choose to "go after" local government officials
who are considered "big fish," or, as Wang described, "tigers."
For example, netizens posted blogs (later reported in the
mainstream media) of one "tiger," Xin Weiming, the Vice Governor
of Shanghai's Luwan District, who mysteriously disappeared while
on a government-sponsored trip to Paris in October 2008 (Ref A).
In many cases, Wang said, it is less likely for an individual
to report local officials at home since they have to "live with
that official." Wang added that it is impossible to know the
origin of online reports or how netizens obtain their
information, but many reports could stem from internal
whistleblowers. China has few whistleblower protections, Wang
said, so the only alternative is to report malfeasance online.



4. (C) In Shanghai, where corruption remains a sensitive issue
in the aftermath of the 2006 Shanghai Party Secretary Chen
Liangyu scandal (Ref B),our interlocutors asserted there are
fewer publicly reported corruption cases -- both online and in
the traditional media -- than in other parts of East China. For
example, Professor Zhu Xueqin, Dean of the Peace and Development
Institute at Shanghai University, said that there has been
greater online reporting of corruption in East China over the
past six months, but relatively speaking, there are noticeably
fewer cases in Shanghai. He pointed to an early March 2009
report on the murder of Li Mingyun, former Party Secretary of
Qingpu Industrial Park, stating that the case was reported by
the media in a "skillful" way to imply corruption without
directly saying as much (septel to follow).

Human Flesh Search Engines in East China
--------------


5. (C) "Human Flesh Search Engines," where netizens post
derogatory and often unsubstantiated information about local
government officials caught in embarrassing situations, appear
to be attracting greater public attention in East China. Hou
Fang of the Shanghai Academy of Social Sciences (SASS) said the
popularity of "Human Flesh Search Engines" is further proof that
there is a widespread perception that the Central Discipline
Inspection Committee (CDIC) is able to investigate only a few
cases, and those cases involving well-connected officials will
not be taken seriously. Official CDIC investigations lack
transparency because they do not release details to the public
until the investigation is completed, Hou said. At the same
time, however, many East China observers are uncomfortable with
"Human Flesh Search Engines," saying they break the spirit of
the law, presume guilt, and lack privacy protections. According
to Hou, the only path forward is to develop and reform official
reporting methods so that corruption is investigated in a
transparent manner. A journalism professor at the Central Party
School's China Executive Leadership Academy on Pudong (CELAP)
recently said that many local government officials see the
benefits of exposing graft online through "Human Flesh Search
Engines," but they are concerned about creating a "mob
mentality."


6. (C) Shanghai University's Zhu Xueqin stated that the negative
side of the "Human Flesh Search Engines" reminds him of the
Cultural Revolution; the "online mob" can say anything it wants
and "use words like pitchforks" without solid evidence. Wang
Xiaoyu pointed out that the trend has attracted attention in the
mainstream media, and the Xinhua News Agency recently reported
that the new practice may leave local government officials
"before a kangaroo court of angry netizens." China's Supreme
People's Court, which has sought to "limit the ability of
netizens to act as an online mob," also is paying attention.
"Human Flesh Search Engines" remain popular, however, because
they "give people a voice," Zhu Xueqin said. In one high
profile case of netizen outrage leading to the sacking of an
East China official, Wang Xiaoyu cited Zhou Jiugeng, a former
real estate bureau official in Nanjing, Jiangsu Province, who
was pilloried online after a blogger posted a photo of Zhou
wearing what appeared to be a USD 14,000 Vacheron Constantin
watch and smoking USD 25 per pack cigarettes. Another example
was that of Wei Juntu, Party Secretary and Director General of
the Auditing Bureau in Dongyang Municipality, Zhejiang Province,
who submitted four bills totaling USD 1,042 for massage services
in 2003, and those bills were recently posted on Tianyu.cn, one
of China's most popular bulletin boards. Both Zhou and Wei were
removed from their posts.

East China Views on Internet Censorship
--------------


7. (C) While East China netizens continue to post reports
detailing the corrupt practices of local officials, our contacts
said, online criticism of the Central Government remains
strictly controlled. Zhu Xueqin used a cat-and-mouse analogy to
describe government efforts to censor the internet. He stated
that in the late 1990s, the "cat" (Central Government) was
asleep, and the "mice" could run around without much
interference; however, at the start of this decade, "the cat
woke up." Zhu believes the Central Government will be able to
strengthen its control over the internet despite the increasing
number of netizens. According to Zhu, the Central Government
has the funding and technical capacity to exercise control, and
the Communist Party's leadership is not willing to relinquish
this power as long as it remains insecure about its ability to
retain political power. Wang Xiaoyu agreed, stating that East
China netizens must deal with the fact that the level and
sophistication of internet censorship is likely to grow.


8. (C) Hou Fang at SASS stated that while the Central Government
is particularly concerned about cases involving Central
Government officials (such postings are usually removed
immediately),reports of corrupt local officials are often
allowed to remain. He notes that these blog postings are used
by government officials to collect information and evidence on
corruption cases. During a March 19-20 visit to Shanghai,
Rebecca MacKinnon, former CNN Bureau Chief in Beijing and
currently a journalism professor at Hong Kong University, stated
that from the Central Government's perspective, allowing
citizens in East China and other parts of the country to post
blogs about corruption also serves the Central Government's
anti-corruption objectives, putting "the fear of God into local
cadres," demonstrating to local officials that they are being
watched.

The Internet and Public Opinion
--------------


9. (C) Local government officials in East China also co-opt the
internet through webchats or by posting letters in order to
shape public opinion. Xie Youping, a law professor at Fudan
University, observed that the internet has allowed netizens to
express their opinions, which has had a positive impact on
governance in East China, as local officials increasingly are
also using the internet to gauge public opinion. Like
MacKinnon, he stated that many local government officials
believe online reports of corruption help the government's
anti-corruption efforts, for which the officials in charge can
take credit during the Central Government's annual March plenary
legislative session in Beijing. With newspapers too controlled
for "democratic" expression, Xie said, the internet helps fill
the void in East China.


10. (C) Officials in Shanghai have followed Premier Wen Jiabao's
lead, frequently "appearing" for online webchats. Shanghai
Municipal Party Secretary Yu Zhengsheng participated in one
well-publicized webchat on November 6, 2008 (Ref C). Xie
Youping also pointed to the case of the Bus Rapid Transit (BRT)
system in Changzhou, Jiangsu Province, to demonstrate the
evolving way in which local government officials in East China
use the internet. In a posting on October 6, 2008, a netizen
wrote that the Changzhou city government's purpose for building
the BRT was for the mayor and other high-level officials to
benefit from kickbacks. On October 18, Changzhou Mayor Wang
Weicheng responded to the blog by posting a letter, stating that
the blogger showed "no moral character" and characterized the
October 6 posting as "libel against me using rumors." At the
close of his three-page letter, the mayor wrote: "You can
express your views about the performances of the government and
the mayor. I can even understand and forgive the use of extreme
language. But you cannot make up rumors to libel people" (Ref
D).


11. (C) The Consul General discussed the BRT controversy with
Changzhou public transit officials during a visit to the city on
March 31 (Ref E). Project consultant Xu Kangming, an American
citizen, told the CG he believed the accusations of corruption,
stemming from an alleged relationship between the mayor's wife
and the owner of the bus company, were off-base. Once
allegations are made, however, it is difficult to assess the
veracity of the claims. Vice Mayor Han Jiayu told the CG that
Changzhou's e-government initiatives receive much attention from
the local government's leadership, and city leaders believe they
can use the internet to refute allegations as Mayor Wang did
during the BRT dust-up. Xie Youping told CongenOffs that a
whole new generation of officials is embracing the opportunity
to communicate via the internet with citizens, as they realize
it is critical to maintaining popular support for the Party --
especially in East China.

The Bottom Line: Only Means to Vent Frustrations
-------------- ---


12. (C) Several contacts expressed concern that a lack of rule
of law in East China provides average citizens with few options
to vent their frustrations, leaving posting blogs about
corruption as their only viable alternative. Hou Fang stated
that currently there is a culture of unaccountability in China,
as the law is not applied equally. Officials who have extensive
connections, who are adept at avoiding detection, or who take
part in only "small-scale corrupt acts" have little to worry
about in the current system, he said. Hou believes that the
foundation of corruption in China is structural, and that the
largest source of corruption in China is that Municipal
Governments have few methods to raise funds other than through
land sales. (Comment: Hou was very interested in learning how
municipalities in the United States raise revenue. End
Comment.)


13. (C) Another legal reform that has proven difficult to
implement due to significant resistance among Party officials,
is the proposal that all high-level officials must publicly
document and report their family assets. Hou states that there
is a heated debate in the Party over the efficacy of such
reporting, and significant concern about reporting the assets of
family members and the privacy of this data. According to an
April 9 report in Caijing magazine, the Shanghai Disciplinary
Inspection Commission and Organization Department of the CPC
Shanghai Standing Committee already have launched a program to
require more than 2000 deputy bureau director and higher level
officials to report their housing assets.


14. (C) Frank Peng, Director of the World Bank Studies Center at
Tongji University, told PolOff on April 13 that there is little
information on how the asset reporting initiative will move
forward, however, and he doubts the program will amount to much
more than window dressing. Xie Youping added that until taxes,
salaries, and local government subsidies are more transparent,
such efforts will inevitably fail, stating that citizens do not
currently have access to dependable local or provincial budget
information, so reliable asset reporting is probably a long ways
off.

Appendix: Online Reports of Corruption in East China
-------------- --------------


15. (C) In the period since mid-2008, there appears to have been
an increase in the number of online reports -- from both blogs
and traditional media -- of corruption involving local
government officials in East China. A sampling of cases
includes:

--Implicating several high-level officials in Wenzhou, Zhejiang
Province with purchasing housing at below market prices, a
four-page document entitled, "name list of external buyers of
extra relocation housing at a temporary price" was posted on
sohu.com and sina.com sites on March 23, 2009 and then widely
distributed by netizens. The list of officials included:
Wenzhou Vice Mayor Chen Zuorong, the Vice Director of the
Wenzhou Committee of the Chinese People's Political Consultative
Conference (CPPCC),the Deputy Party Secretary of Wenzhou's
Public Security Bureau, and the city's deputy chief prosecutor.

--The Shanghai Daily reported in February 2009 that Dong Feng,
former Party Secretary of a district in Jiangsu's Xuzhou City,
and his mistress Chen Wen were found guilty of soliciting and
accepting bribes worth US$412,269 on 44 occasions. Dong was
sentenced to 13 years in prison.

--Zhou Jiugeng, head of a district real estate bureau in
Nanjing, Jiangsu Province was dismissed from his job after
netizens posted photos in December 2008 of Zhou smoking
expensive cigarettes and wearing what appeared to be a US$14,000
Vacheron Constantin watch. Rumors also circulated in the
blogosphere that Zhou drove a Cadillac. Zhou was removed for
"expressing inappropriate opinions and spending office funds on
luxury cigarettes."

--Sina.com reported in February 2009 that Kang Huijin, Vice
Governor of Pudong District, was sentenced to life in prison for
accepting bribes worth RMB 6 million (nearly USD 1 million) from
1993 to 2007. Kang was also accused of possessing property worth
RMB 11.84 Million, from unknown sources. Kang's wife received a
five-year jail term for her involvement, and their assets were
seized.

--Local media reported in February 2009 that Wei Juntu, Party
Secretary and Director General of Zhejiang Province's Dongyang
City Auditing Bureau was removed for using public funds to pay
for massage services. He submitted four bills totaling US$1,042
for services at a massage parlour in 2003, and these bills were
first posted by a netizen on Tianya.cn on January 20.

--According to a December 2008 Xinhua News report, Chen Shili,
previously the top legislator in Huainan City, Anhui Province
was convicted and sentenced to death for abuse of power after
taking USD 875,000 in bribes from at least 7 companies from 1991
to 2007. When arrested in May 2008, he was the Chairman of the
Huainan Municipal People's Congress.

--Xin Weiming, Vice Governor of Shanghai's Luwan District,
disappeared while on a government-sponsored trip to Paris in
October 2008 (Ref A). He has yet to be linked to any crime;
however, online blogs are rife with speculation over his
involvement in corruption. Succumbing to public pressure, he
resigned in December.

--Yang Xianghong, an official in Wenzhou, Zhejiang Province, who
overstayed a 12-day European tour in September 2008, was
dismissed from office after two Wenzhou municipal government
officials dispatched to find him in Paris were unable to
persuade him to return. The Wenxhou municipal government also
sent two officials to Paris in a futile attempt to persuade Yang
to return (Ref F). Hexun.com reported on April 1 that Yang's
wife, You Jie, had been arrested for money laundering after it
was revealed that she had wired RMB 20 million (USD 3 million)
to her daughter in France one month before Yang's disappearance.

--Xinhua News Agency reported on November 28, 2008 that official
delegations from Wenzhou, Zhejiang Province and Xinyu, Jiangxi
Province allegedly traveled to the United States for purported
official purposes but abused public funds by spending money on
tourism in various destinations. The report was based on an
internet blog posted by an individual who claimed to have
discovered documents that prove the delegations used public
funds for personal travel to Las Vegas, Niagara Falls, and
elsewhere. The documents reportedly were found in a Shanghai
subway stop, and the netizen posted copies of the documents on
the internet (Ref F).


CAMP