Title: China's Bullet Trains: New Scandal
Added: Feb 22, 2012
Author: ChinaForbiddenNews
Duration: 3:41
Description:
Follow us on TWITTER: http://twitter.com/cnforbiddennewsLike us on FACEBOOK: http://www.facebook.com/chinaforbiddennewsA recent exposure of procurement directory of CSR Corp.adds another corruption scandal to the Railways Ministry.China's media reported, Railways Ministry's procurementof CRH2 high-speed trains was not through open bidding.Rather, it directly appointed some particular suppliers.The collusion of power and moneyproduced China's bullet trains at sky-high prices.The public thundered the Chinese Communist Party' (CCP)Railways Ministry that loots people's hard-earned money.The public demands the procurement informationto be made transparent to people.CSR Corp.'s directory of suppliers for CRH2 bullet trainslisted details of over 3,000 required materials.These materials range from few-cents boltsto RMB 0.78 million semi-automated control panels.All suppliers listed in the supply chain of Railways Ministryreportedly have kinship or friendship ties with officials.Like Zhang Shuguang, Transport Bureau ex-director wife,and Ding Shumiao, Shanxi-based businesswoman.Both contracted a number of high-speed rail' supplies,just relying on such a relationship.Among the toilet facilities for CRH2 bullet trains,an automated hand-wash basin costs RMB 70,000.A colorful marble washstand is priced RMB 26,000;sensor faucet RMB 12,000; tissue box RMB 1,100.The total cost of a train carriage toiletis nearly RMB 0.40 million.A 15-inch LCD monitor inside the carriage costsup to RMB 10,000; a single seat is charged at RMB 22,000.A refrigerator's price is RMB 68,000.For China's high-speed rails, domestically-made partshave approached the price of imported products.The public said, prices of these common devicestopped their market prices several times.The public needs to pay great attentionto these matters, happening behind-the-scene.A Zhejiang-based university institute' director reflectson the issue of ubiquitous corruption in today's China.Any official procurement is dodgy, he says,this is a social malady.Director (Zhejiang-based university institute):"The high-speed railways breed a lot of embezzlers.In fact they're not the worst.This group of people are absolutely ruthless and shameless.If China's electricity industry was audited,the high-speed railways would count for nothing!China's entire finance is controlled by the CCP princelings,the 3rd generation offspring of CCP cadres in Yan'an era.Their financial transactions involve billions of Yuan.Beijing's apparent bustling just stems from these princelings."The Century Weekly magazine reported that manipulators ofpurchase prices are largely senior Railways Ministry' officials.Moreover, the majority of suppliers are officials, relativesof Railways Ministry management and related parties.The wife of Zhang Shuguang, ex-chief of Transport Bureau,imported vacuum toilets for high-speed trains.Ding Shumiao is a Shanxi businesswoman with close ties toLiu Zhijun, former Railways Minister, and Zhang Shuguang.Without a professional experience in high-speed rail wheelsand sound barrier, Ding even could monopolize the sector.Wu Wenxin, former vice-president of Automation Divisionof the ABB Group in Germany, reviews the issue.Wu says, as the system is not perfect,some dishonest businessmen bribe procurement officers.The higher the purchase price, the greater the bribe.Thus, raising prices will be ignored by the buyer.However, these suppliers would mostly selllower quality and high-price products.No wonder something always goes wrongwith the high-speed trains just after leaving the factory.Wu Wenxin: "In mainland China, I believe in many places,the business is done unjustly and unreasonably.Even when dealing with international tenders,there would be a variety of absurd practices.The tender document can be exaggeratedly elaborated,while the supplies can do things completely the other way.No one can really be held liable for this,and no one is willing to regulate it.This is why when high-speed rails are put into servicewould experience serious quality problems."Wu notes, procurement problems, like ignoring safety limitsand using jerry-built materials, are a risk to people's safety.As the buyers receive bribes, they would turn a blind eyeto the bad quality of the supplies.NTD reporters Xie Ying, Li Ting and Xiao Yu《神韵》2011世界巡演新亮点http://www.ShenYunPerformingArts.org/
Channel: News
Tags: corruption scandal railways china's media crh2 high-speed trains collusion power money sky-high prices chinese communist party' (ccp) ubiquitous billions of yuan the century weekly magazine
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