Former CR Group Chairman Song Lin Faces Prosecution, Mistress Worked at UBS



(Yicai Global) Dec. 9 – The Guangzhou Municipal People's Procuratorate brought a prosecution at the Intermediate People's Court of Guangzhou Municipality against Song Lin, former Chairman of the Chinese state-owned enterprise China Resources (Holdings) Co. on bribery and corruption charges.

The accusation the prosecutor filed says the defendant, Song Lin, abused his position as the general manager and chairman of China Resources (Holdings) Co. to seek benefits for others, solicited and illegally accepted valuable property from others, and misappropriated an exceptionally large amount of valuable public property. It urges that the defendant should be prosecuted for criminal liability on bribery and corruption charges.

In addition to Song's high social status and his allegedly corrupt actions, one of the reasons for the extensive media attention drawn to the case is that cooperation between UBS and CR's subsidiaries grew significantly after Song's mistress, Yang Lijuan, was hired by a Swiss investment bank, indicating that some leading global banks resorted to "indirect bribery" tactics such as employing mistresses or the children of tainted officials to secure deals with state-owned enterprises (SOEs).