How Much Money Have Li Shangfu and Wei Fenghe Embezzled

Wang Yilin, the former chairman of China National Offshore Oil Corporation, is embroiled in a corruption scandal involving 900 billion yuan. The accompanying image shows Wang Yilin's basement filled with stacks of renminbi. (Video screenshot)

[People News] Former Chinese Defence Minister Li Shangfu and Wei Fenghe were both sentenced to death with a two-year reprieve on May 7. After the two-year reprieve, their death sentences will be commuted to life imprisonment, with no possibility of reduction or parole. This verdict raises questions about the extent of their embezzlement. Hong Kong's Ming Pao indicates that, based on previous cases within the Communist Party of China, a sentence of 'death with reprieve + life imprisonment' typically corresponds to bribes ranging from 200 million to 1 billion yuan.

The 'China Perspective' column in Ming Pao highlights that the sentences handed down to Wei Fenghe and Li Shangfu have set a new record for the sentencing of senior generals in the PLA's anti-corruption campaign, creating a significant stir both domestically and internationally. The previous heaviest sentences were given to former Vice Chairman of the Central Military Commission Guo Boxiong and former Chief of Staff of the Joint Staff Department Fang Fenghui, both of whom received life sentences for corruption in 2016 and 2019, respectively.

The article mentions that Gu Junshan, the former Deputy Minister of the General Logistics Department of the PLA, is considered a 'major embezzler' within the military. He was convicted of five crimes (embezzlement, bribery, misappropriation of public funds, and abuse of power) and was sentenced to death with a reprieve in 2015. After his sentence was commuted to life imprisonment, he had the possibility of a reduced sentence, unlike Wei and Li, who will serve their sentences without the chance of parole.

Guo Boxiong, Fang Fenghui, and Gu Junshan are associated with the previous regime, while Wei Fenghe and Li Shangfu, who have been reinstated in the 'new era' (referring to the period after Xi Jinping took power), have received severe sentences. This reflects Xi Jinping's profound disdain for the two and his intention to 'kill the chicken to scare the monkey,' aiming to deter corruption within the military.

Ming Pao reports that in the sequence of their downfalls, the next generals to face trial will be Miao Hua, the former director of the Political Work Department of the Central Military Commission, and He Weidong, the former vice chairman of the Central Military Commission. They will be followed by Zhang Youxia, the vice chairman of the Military Commission, and Liu Zhenli, the chief of staff of the Joint Staff Department of the Military Commission. Their sentences are expected to be life imprisonment or harsher penalties.

Wei Fenghe, aged 73, was the first commander of the Rocket Force and served as a member of the Central Military Commission of the Communist Party of China, State Councillor, and Minister of National Defence from March 2018 to March 2023. Li Shangfu, aged 68, previously held the position of Minister of Equipment Development at the Central Military Commission and was under investigation just over five months after assuming the role of Minister of National Defence, with Wei Fenghe also being scrutinised 21 days later.

The simultaneous investigations, the concurrent announcement of charges, and the matching sentences suggest that both individuals are part of the same faction and are implicated in corruption cases related to the Rocket Force and equipment systems. In June 2024, the Chinese Communist Party officially disclosed the charges against both, revealing that Li Shangfu faced an additional bribery charge compared to Wei Fenghe.

Analysts indicate that Li Shangfu's extra charge of 'bribery' logically points to the 'previous level' that possesses the authority for promotion recommendations or project approvals. Given that the two were closely positioned in the handover of the Minister of National Defence, it is highly likely that Li Shangfu bribed Wei Fenghe to ensure a smooth 'succession' or to secure absolute control over equipment procurement. This further illustrates that their corruption is not an isolated incident but rather a symbiotic relationship characterised by 'buying and selling positions.'

The funds for Li Shangfu's bribery likely originate from "kickbacks" provided by downstream military contractors, which he then partially funnelled upwards to Wei Fenghe. This model of "downstream supporting the midstream, and the midstream bribing the upstream" has resulted in a significant portion of the Chinese Communist Party's defence budget being wasted internally, ultimately lining private pockets.

Ming Pao reports that corruption cases within the Chinese military are adjudicated in military courts, with details kept confidential and the amounts of corruption not disclosed. How much money have Wei Fenghe and Li Shangfu actually embezzled? The modern Chinese criminal law system emphasises the "retention of the death penalty, but with strict control and cautious application." Since the 18th National Congress of the Communist Party, all officials sentenced to death have been found guilty of accepting bribes exceeding 1 billion yuan (RMB). For instance, Lai Xiaomin, the former chairman of China Huarong, was convicted of corruption exceeding 3 billion yuan, while Bai Tianhui, the former general manager of Huarong International, accepted nearly 1.8 billion yuan in bribes.

The article notes that on the day Wei and Li were sentenced, Zhou Xian, the former vice chairman of the Anhui Provincial Political Consultative Conference, was also sentenced to death with a two-year reprieve for accepting bribes of 134 million yuan. Based on previous cases, those sentenced to "death with reprieve + life imprisonment" typically have accepted bribes ranging from 200 million to 1 billion yuan. For example, Sun Deshun, the former president of CITIC Bank, accepted bribes of 979.5 million yuan; Zhao Zhengyong, the former secretary of the Shaanxi Provincial Party Committee, accepted 717 million yuan; Gu Zhongwen, the former director of the General Administration of Sport of China, accepted 236 million yuan; and Li Wenxi, the former director of the Liaoning Provincial Public Security Department, accepted 546 million yuan. It is believed that the amount of bribes received by Wei and Li also falls within this range.