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5 stand trial for profiting from illegal railway deals

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The daughter of Ding Shumiao, the businesswoman linked to a corruption probe involving the disgraced ex-railway minister, and four others stood on trial for illegal business dealings in Beijing yesterday.

Ding Shumiao.[File photo]

The trial of Hou Junxia and four others, who acted as middlemen between railway officials and project contractors, is the first in a series of graft cases involving former railway minister Liu Zhijun, Beijing Evening News reported yesterday.

The case is not open to the public and the Beijing No.2 Intermediate People's Court has asked lawyers in a written agreement to avoid the media, the paper said.

But legal experts have indicated that the case could throw up the mutually beneficial business links between Ding and Liu.

Ding, the chairwoman of Beijing Boyou Investment Management Corp, is alleged to have profited from a number of railway projects worth 3 billion yuan (US$486 million).

In return, Liu reportedly accepted large bribes and the company of several women supplied by Ding.

For their roles in winning big-money contracts, Hou and the four other defendants are charged with illegal business dealing.

Liu, however, has only been accused of abuse of power, meaning that the prosecutors could not come up sufficient evidence to nail Liu that he profited from the deals, legal experts said.

There has been no charges filed against Ding yet.

If Hou and others are found guilty, they could face jail terms ranging from five to 15 years and huge fines as well, the report said.

Ding and her daughter were previously caught up in a fraud case, when they, on Liu's behest, tried to get a lighter punishment for He Hongda, Liu's subordinate, who was also charged with graft.

At the end of 2008, Hou got in touch with a woman, who claimed to have strong ties with senior government officials. Hou and Ding paid the woman 44 million yuan to try and secure a favorable judgement for He. But despite their best efforts, He Hongda was still sentenced to 14 years in jail in November 2009.

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