China jails Canadian tycoon for 13 years for finance crimes; company fined $8.1 billion
Beijing, Aug 19: A Chinese-born Canadian tycoon who disappeared from Hong Kong in 2017 was sentenced Friday to 13 years in prison for a multibillion-dollar string of financial offences and his company was fined 8.1 billion, a court announced.
Xiao Jianhua was convicted of misusing billions of dollars of deposits from banks and insurers controlled by his Tomorrow Group and offering bribes to officials, the Shanghai No. 1 Intermediate People's Court said on its social media account.
Xiao was fined 6.5 million yuan ( 950,000) and his company was fined 55 billion yuan ( 8.1 billion), the court said.
Xiao was last seen at a Hong Kong hotel in January 2017 and was believed to have been taken to the mainland by Chinese authorities. News reports later said he was under investigation by anti-graft authorities, but no details were released.
The Canadian government said diplomats were blocked from attending his July 5 trial.
Xiao was deemed to be a Chinese citizen, which meant he wasn't entitled to see Canadian diplomats under a consular treaty between the two governments, Foreign Ministry spokesperson Wang Wenbin said.
That suggested Xiao might have entered the mainland using a Chinese travel document instead of his Canadian passport. Beijing has in other cases refused diplomats access to citizens of their countries who entered using Chinese identity documents.
China does not recognise Chinese citizens with dual nationality. Xiao Jianhua has Chinese nationality, Wang said. He does not enjoy the right to consular protection of other countries.
The Canadian Embassy in Beijing referred a request for comment to the Canadian government in Ottawa.
Tomorrow Group has been linked to a series of anti-corruption prosecutions and seizures of financial companies by regulators.
Friday's announcement said Xiao and Tomorrow Group were convicted of improperly taking more than 311.6 billion yuan ( 46 billion) from the public and misused entrusted property and money totaling 148.6 billion yuan ( 21.8 billion).
Xiao vanished amid a flurry of prosecutions of Chinese businesspeople accused of misconduct.
That fuelled speculation the ruling Communist Party might be abducting people outside the mainland. Hong Kong at that time prohibited Chinese police from operating in the former British colony, which has a separate legal system.
Since then, Beijing has tightened control over Hong Kong, prompting complaints it is violating the autonomy promised when the territory returned to China in 1997. The Communist Party imposed a national security law in Hong Kong in 2020 and has imprisoned pro-democracy activists.
Hong Kong police investigated Xiao's disappearance and said he crossed the border into the mainland. An advertisement in the Ming Pao newspaper in Xiao's name the same week denied he was taken against his will.
At the time of his disappearance, Xiao was worth nearly 6 billion, making him China's 32nd wealthiest person, according to the Hurun Report, which follows the country's wealthy.
In 2020, regulators seized nine companies controlled by Xiao.
That included four insurers, two securities firms, two trust firms and a company involved in financial futures. The business magazine Caixin reported at the time that the seized assets totaled almost 1 billion yuan ( 150 million).
A retired bank regulator, Xue Jining, admitted taking 400 million yuan ( 62 million) in bribes in a corruption case linked to Baoshang Bank Ltd. in the northern region of Inner Mongolia, which regulators seized from Tomorrow in 2019.
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Inappropriate for MLAs seeking free IPL tickets, says D.K. Suresh
Bengaluru: Bengaluru Milk Union Ltd President D.K. Suresh on Monday said it is inappropriate for MLAs to seek free IPL tickets, adding that those interested in watching matches should pay for them personally.
Speaking to reporters near his residence in Sadashivanagar, he said, “IPL is a commercial tournament and does not represent the country. It is not right for public representatives to focus too much on such matters.”
Referring to the recent controversy during the RCB celebrations, he said, “let us find out who benefited the most from the statements made during the incident.” He also pointed out that BJP MLAs had received IPL tickets as well.
Responding to discussions about relocating the Chinnaswamy Stadium, Suresh said the government has already approved the construction of a new stadium at a location he had proposed.
“I had suggested building a stadium in Surya City and submitted a proposal for it. Bengaluru needs four stadiums in four directions to cater to its growing population and encourage youth participation in sports,” he said.
He noted that apart from Kanteerava Stadium, KSCA, and the Football Stadium, there are limited facilities in the city.
“When I was a Lok Sabha member, I had proposed allocating 100 acres in my constituency at Surya City. The land was later earmarked and the plan approved,” he added.
Suresh said he has discussed the project with Minister Zameer Ahmed Khan, Rajiv Gandhi Housing Corporation Chairman Shivalingegowda, and Anekal MLA Shivanna.
“The Cabinet has now approved the project, and a stadium will be developed on around 50–60 acres,” he said.
He further added that he has requested the Deputy Chief Minister to build another stadium at Shivarama Karanth Layout through the BDA, where 40 acres have been allocated. Plans are also being discussed to develop a well-equipped stadium in Bidadi.
Commending state government's recent bilingual policy move, Suresh said forcing children to learn three languages could affect their comprehension.
“It is a good decision to make two languages compulsory. Learning a third language should be left to the choice of students and parents,” he said.
Responding to criticism from BJP leaders, he said their tendency is to oppose every decision of the government.
“To please their central leadership, they take a pro-Hindi stance. Instead, they should advocate for the adoption of Kannada in all states,” he said.
When asked about the earlier three-language policy under Congress, he said, “the situation is different now. Today, the focus should be on quality learning. Kannada should remain the primary language, while students and parents can choose an additional language.”
