Mistress makes new contributions to China's anti-corruption campaign by pulling down top planning official Liu Tienan

Updated:Fri, Aug 2, 2013 09:34 AM   By Bernd Chang

Liu Tienan,Mistress anti corruption

Liu Tienan met and later established his relationship with Ms. Xu in Japan during the time from 1996 to 1998 when Liu was economic counselor in Chinese embassy in Japan. Xu later emigrated to Canada. It is Xu that finally led to the downfall of Liu Tienan.

Liu Tienan has officially been fired from his post as deputy head of China’s top economic planning agency on suspicion of 'serious discipline violations' on May 14th. It is the mistress anti-corruption mechanism that helps in pulling him down.


Yet another evidence that mistress-led anti-corruption mechanism is effective in China.

After toppling down Yi Junqing, a vice-ministerial-level official and top Marxist theorist leading a key CPC’s think tank, and Lei Zhengfu and other top officials in Chongqing, Chinese mistresses make new contributions to lofty China’s anti-corruption cause.

Liu Tienan, the former head of the National Energy Administration (NEA) has officially been fired from his current post as deputy head of  the National Development and Reform Commission (NDRC) and placed under investigation by Central Commission for Discipline Inspection (CCDI) for "serious discipline violations" on May 14th.

Liu Tienan  is the latest senior official caught in a renewed anti-graft campaign launched late last year by Beijing’s new leadership with President Xi Jinping as the new core.

Liu Tienan 刘铁男

Liu Tienan delivered a speech at the Capital Steel Group in 2005.

Similar to the case of Yi Junqing, Liu Tienan’s downfall also involves in tip-off by disloyal mistresses. The story provided by 21 Century Business Herald on how, when and why his long-time mistress Ms. Xu broke from him and eventually reported his evidence of crime to the influential Chinese financial magazine Caijin also reveals the typical characteristics of corruption in China.

Liu Tienan met and later established his relationship with Ms. Xu in Japan during the time from 1996 to 1998 when Liu was economic counselor in Chinese embassy in Japan. Xu later emigrated to Canada.

It was Xu that helped Liu to get an academic credential from Nagoya University by ghost-writing a dissertation for him. Liu actually had never listened even one lesson in the University.

In June 2003, Guo Jinghua, the wife of Liu Tienan, and businessman Ni Ritao managed to register their shareholding company Canadian Green Resources Investments Inc (CGR)  in Cadana with the help from Ms. Xu. Guo Jinghua took 10% of the company share and Ni Ritao took 90%.  In addition, Ni Ritao registered his own company Sun Wave Investments Ltd.(SWI). Both the two companies hired Ms. Xu as CEO.

In December 2005, Guo Jinghua transferred her share and her board membership to her son Liu Decheng, who at the time was studying in Canada.

The early business of CGR involved in purchasing and merging some domestic paper pulp companies including Heilongjiang Black Dragon Co., Ltd., Yanbian Shixian Bailu Paper Co., Ltd. and Jilin Paper Co., Ltd. in the name of Ni Ritao-controlled Zhongzhu Investment Holding Co., Ltd..

According to some insider, Ms. Xu finally turned against Liu Tienan and Ni Ritao because she refused to play her role for fear of the high risk of cheating financial loans involved in purchasing Canadian paper pulp company New Skeena.

In documents involved in the purchase of Canadian paper pulp company New Skeena, Ni Ritao had the financial report fabricated. There was not any company regrouping activity but actually buying a shell company in overseas and then using the shell company to swindle money out of Chinese state-owned banks. Part of the work had to be done by CEO Ms. Xu, but Ni did not tell her at first of his real intention.

Before Ni submitted his project to Chinese authority, he had forged almost all of the important documents, some of which were signed by shareholder Ms. Xu, including a report issued by American Appraisal Canadian Subsidiary. Ni bought the Canadian asset at 9.09 million Canadian dollar, but fabricated the figure to 202 million.

The fraud would have succeeded if not for Ms. Xu, who thought the risk in swindling several hundred million RMB out of  bank by forging all the important documents was too high. She thought she could not keep on the money laundering project and decided to resign. But Liu asked her to continue the project.

Ms. Xu came to meet Liu Tienan face to face and pointed out the high risk of the project and asked him to stop Ni Ritao. But Liu would not give up and stood firm on the side of Ni.

Thinking Ms. Xu would insist on washing her hands off the project, Ni Ritao threatened to kill her because Xu knew too much.

Facing death intimidation, Ms. Xu, a once intimate mistress of Liu Tienan, finally turned against him and Ni. She exposed much of the multi-million cheating plan of Ni and Liu to the news magazine Caijing.  And a deputy editor of this magazine, Luo Changping reported on his verified Sina Weibo account a series allegations against Liu in December 6, 2012, accusing him of fabricating his own academical credentials, improperly profiting from his position and keeping a mistress.

At first Chinese authorities denied all the allegations and kept Liu Tienan on important post, actually they might be investigating him secretively or assessing the political situation on whether bringing him down is necessary for the party.

After six months, Chinese top leaders appear to have reached consensus and officially announced Liu Tienan not any more a qualified comrade of them.

As Chinese netizens hasten to call Mistress Xu as new anti-corruption heroine of China after Zhao Hongxia and Chang Yan, corrupted Chinese officials will learn a lesson from the case of Liu Tienan that they can ignore the numerous Chinese laws and regulations, ignore the plight of the people, even ignore the harsh warnings from China's top leader Xi Jinping, but never ignore the feelings and demands of their mistresses, who may be secretive anti-corruption agents lying in ambush on their bed!


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