Chapter 5 Chapter 4 Relative Corruption Under Absolute Power

If there are laws to follow in corruption, "absolute power leads to absolute corruption" is really an unbreakable "iron law" of anti-corruption.Although the "Administrative Licensing Law" with the responsibility of restricting power has been promulgated and implemented in China, as long as the administrative licensing procedures are not made public and standardized, the directors of ministries and commissions who control the power of administrative approval will repeatedly stage the "always in the river" How can I not get my shoes wet while walking".

The Medical Device Department of the State Food and Drug Administration ("SFDA"), where Hao Heping is the director, has an absolute right to speak in the national medical device industry.Under such strong power, many officials in charge became silverfish in the 2006 national anti-commercial bribery action. Hao Heping's crimes are not new, even very low-level, nothing more than "money and power transactions, collusion between officials and businessmen." If only based on the amount of crimes, Hao Heping's bribery is simply a piece of cake.The combined bribes of the couple did not exceed 1 million yuan, but they received a total of 20 years in prison.According to this amount, we can only say that Hao Heping, who has absolute power, has a relatively small amount of corruption.It can be said that Hao Heping, as a corrupt official, is relatively less hateful, but definitely regrettable.

The 58-year-old Hao Heping was a government official suspected of taking commercial bribes in 2006. His fall was not only a new proof for the "59-year-old phenomenon", but more importantly, it revealed the hidden rules of the medical device market. Calculating an account, the bribery of rich officials is puzzling In just half a year, Hao Heping and Cao Wenzhuang, the director of the registration department of the State Food and Drug Administration, fell one after another. These two "technocrats" and "elite bureaucrats" who controlled the approval power suddenly evolved as "corrupt bureaucrats".

Many Beijing drivers know that Xizhimen Bridge is one of the most difficult bridges in Beijing. Driving across the bridge is like entering a maze.Despite the complex terrain, many pharmaceutical companies or medical units are still very skilled at going up and down bridges, drilling holes, and turning around until they get to where they want to go, because the State Food and Drug Administration can determine their life and death. right here. In June 2005, more than 10 days after Zheng Xiaoyu, the former director of the department, was dismissed from the position of the director, the Food and Drug Administration broke the news again. On July 8, 2005, Hao Heping, the former director of the medical device department, was detained by the procuratorate on suspicion of accepting bribes.Half a year later, on January 12, 2006, Cao Wenzhuang, director of the Drug Registration Department and secretary-general of the Chinese Pharmaceutical Association, was taken away by the People's Procuratorate of Xicheng District, Beijing.Accidents happened to senior officials of the Food and Drug Administration, and the outside world is still talking about it.After hearing about Hao Heping and Cao Wenzhuang's accident, many people felt "very shocked and regretful".

After get off work on July 8, 2005, Hao Heping, who had already returned home, received a call from a leader of the Drug Inspection Bureau, saying that there was urgent work to be negotiated, and Hao Heping was asked to rush to the unit immediately.Due to the frequent food and drug emergencies in recent years, it is common for the heads of various agencies to be called to the work unit suddenly at home, so Hao Heping returned to the work unit soon.But in Hao Heping's office, what was waiting for him was the case handlers from the Xicheng District Procuratorate of Beijing. The prosecutor on the spot announced that Hao Heping was formally detained on suspicion of accepting bribes.

Hao Heping was taken away from his workplace by the procuratorate without any precautions.As a rule, the procuratorate will not easily impose criminal detention on senior officials above the division or bureau level. The reason why they are directly criminally detained without the "shuanggui" procedure is because the prosecution has sufficient evidence, and the evidence has been firmly established. According to the information on the official website of the Drug Inspection Bureau, the responsibilities of the Medical Device Department include: drafting relevant national standards, drafting and revising industry standards for medical devices and sanitary material products, and supervising the implementation of production quality management standards; responsible for the registration and supervision of medical device products ;Responsible for the management of medical device manufacturing enterprise licensing; responsible for the monitoring and re-evaluation of medical device adverse events; accrediting the qualifications of medical device clinical trial bases, testing institutions, and quality management standard review institutions; responsible for the management of the medical device review expert database; Verification of medical device registration and quality-related issues and suggestions for handling, etc.

In the Drug Inspection Bureau, Hao Heping is an "extremely approachable" director. Hao Heping, 58, was born in Kunming, Yunnan Province on October 7, 1948. He graduated from Kunming Institute of Technology in 1974, majoring in mechanical design and manufacturing.Since the establishment of the Drug Inspection Bureau in 1998, Hao Heping has served as the first director of the Department of Medical Devices. This senior official who has been the director for 7 years is plainly dressed and enthusiastic about academic research. Drafting of regulations.In addition, Hao Heping is also the honorary editor-in-chief of "Chinese Journal of Medical Devices", the chief editor of "Medical Device Supervision and Evaluation" published by China Medical Science and Technology Press, and presided over the compilation of "Guidelines for the Implementation of Biological Evaluation of Medical Devices" and many other books.In addition, Hao Heping also served as a master's tutor for "Medical Device Quality Supervision Technology" at Capital Medical University.

Hao Heping has worked in the medical device department for 25 years and has a considerable say in the medical device market. The reason for his fall makes people think of approval corruption. However, judging from Hao Heping's personal financial situation, Hao Heping's family belongs to a high-income family in China, and he should not have embarked on a criminal path for hundreds of thousands of yuan. Hao Heping's wife, Fu Yuqing, once served as the director of the administration department of Sinopharm United Medical Devices Co., Ltd.The company is a wholly state-owned enterprise directly managed by the former State Pharmaceutical Administration. The company was spun off after the National Drug Administration was established in 1998 to take over the functions of the State Administration of Medicine.Sinopharm United Medical Devices Co., Ltd. is currently the largest medical device distribution company in China. It has strong economic strength and a good government background. The normal salary of Fu Yuqing, the wife of the director of the administration department, is not lower than that of Hao Heping.

Hao Heping once bought 3 houses.Among them, in May 2002, he participated in the unit's housing reform and spent more than 90,000 yuan to buy his first house in Haidian District.The second house was purchased in the second half of 2002 in the name of his son Hao in the Entrepreneur's Home in Haidian District, Beijing, with a price of more than 1 million yuan.The third house was purchased in Changqingyuan Community, Chaoyang District, in the second half of 2004, and the house price was more than 1 million yuan.Only these three houses, according to the current market price at least 400 million yuan.

In addition, Hao Heping still has a considerable amount of family savings, and there are more than 400,000 yuan in cash in the safe of the house of the entrepreneur's home alone.Because Hao Heping often goes abroad, in addition to RMB, there are also some foreign currency deposits in the deposits. The US dollars are about tens of thousands of dollars, and there are some francs and Japanese yen. Xinhua News Agency reporter Li Jinghua once calculated the property of Hao Heping and his wife. Hao Heping's family income is roughly as follows: First, the salary and subsidies of Hao Heping and his wife Fu Yuqing.Hao Heping's annual income is about 60,000 yuan, and Fu Yuqing's annual income is about 100,000 yuan; the second is the money earned from buying stocks. In 1992, the former Pharmaceutical Bureau organized the purchase of the original shares of "Harbin Pharmaceutical Factory", and the principal and profit were about 200,000 yuan.In addition, buying the original stocks of listed pharmaceutical companies such as "North China Pharmaceutical General Factory" and "Northeast Pharmaceutical General Factory" earned 500,000 to 600,000 yuan from these stocks; the third is the income from teaching at Capital Medical University and publishing books and articles.Hao Heping supervises undergraduates and postgraduates at Capital Medical University. Capital Medical University pays 2,500 yuan per month, which amounts to 80,000 to 90,000 yuan in three years.Leading postgraduate research projects, there is a labor fee of 1,000 to 2,000 yuan per month, and about 20,000 to 30,000 yuan in three years.Published the book "Biological Evaluation of Medical Devices", published some articles in the industry's internal magazines, and participated in the compilation of internal legal textbooks. and income from lectures.Hao Heping participated in the demonstration of major medical device projects in many countries, provinces and enterprises, and received consulting fees of 50,000 to 60,000 yuan.Since 2000, provincial and municipal food and drug administrations, local industry associations, intermediary agencies and various enterprises have invited him to give lectures, and the total cost of these lectures is about 300,000 to 400,000 yuan.

Calculated in this way, regardless of normal or gray income, Hao Heping's family property already has millions of yuan, and he is indeed not worth breaking down for hundreds of thousands of yuan.However, his shoes eventually "wet", and wet very badly. Commit three crimes, each of which is a transaction of power and money According to the charges of the No. 1 Branch of the Beijing Municipal People's Procuratorate, Hao Heping has committed three major crimes. The first is that he and his wife, Fu Yuqing, reported to Hao Heping's old friend and the general manager of a medical device company in Shandong under the pretext of house renovation. Mr. Chen asked for a bribe of 200,000 yuan. Hao Heping did not raise any objections to the accusation.Hao Heping and Mr. Chen have been friends for more than 20 years. When Hao Heping graduated from university and worked as an ordinary cadre in the Medical Device Bureau of the Ministry of Health, Mr. Chen's company had just started.From then on, Hao Heping often gave them some technical guidance.In order to express his gratitude to Hao Heping, Mr. Chen, a generous Shandong native, said to Hao Heping many times: "If you have any financial difficulties, just bring it up! I will handle it!" Because Mr. Chen and Hao Heping had a friendship of more than 20 years. Although Hao Heping had helped Mr. Chen many times, during these 20 years of communication, the two had always maintained a gentleman's friendship and had no money exchanges.It was not until the beginning of 2004, in order to express his gratitude to Hao Heping, that Mr. Chen invited Hao Heping and his lover Fu Yuqing to Weihai City, Shandong Province for vacation, and there was a qualitative change in their relationship. Hao Heping and his wife lived in Weihai for two days.Before leaving, Mr. Chen accompanied Hao Heping and his wife for a farewell meal according to Shandong rules.That is, during this meal, his wife Fu Yuqing intentionally or unintentionally mentioned his son, and mentioned that the house he bought for his son in the Entrepreneur’s Home in Haidian District, Beijing had not yet been renovated, and the old couple was a little nervous financially. Mr. Chen quickly asked, "How much do you need?" Hao Heping understood his identity as the director. He was embarrassed to say it, but his wife Fu Yuqing told the truth: "It will cost about 200,000 yuan." "No problem, leave it to me!" Mr. Chen said very boldly: "But it's not safe or convenient for you to take so much cash on the road now. You go back to Beijing to open an account and tell me the account number, and I will transfer the money to you." Just remit it to you." Because he is an old friend who knows everything, Hao Heping has helped Mr. Chen a lot over the years, and he will be retiring in a few years, so Hao Heping didn't think there was anything wrong with taking the 200,000 yuan.The next day, Hao Heping and his wife returned to Beijing. On the third day, Fu Yuqing opened an account in his own name at the Beijing Agricultural Bank and told Mr. Chen the bank account number.Mr. Chen immediately asked the company's accountant to withdraw 200,000 yuan in cash and deposit it into the account opened by Fu Yuqing. The cash of 200,000 yuan was paid by Mr. Chen from the company's personal dividend account.Mr. Chen also felt that he had to give the 200,000 yuan to Hao Heping for both public and private purposes.Later, Fu Yuqing used the 200,000 yuan to renovate the house in the entrepreneur's home. Of course, we cannot deny the personal friendship between Hao Heping and Mr. Chen, but everyone knows that the medical products produced by Mr. Chen's company need to be approved by the State Food and Drug Administration before they can be produced and put on the market.This friendship is based on the fact that Mr. Chen's company has more than 100 varieties of medical devices that need to be approved by the Medical Device Department of the State Food and Drug Administration, and they need "support, help and care" from Hao Heping. With this relationship, Mr. Chen does not need to go to Beijing by himself. When his subordinates go to the Medical Devices Department of the State Food and Drug Administration to go through the approval procedures, they only need to put the approval materials in the acceptance office and turn around to say hello to Director Hao Heping. That's fine.With Hao Heping's signature and consent, the result is of course a quick report and quick approval.Mr. Chen gave the money not only to thank Hao Heping, but also to build a good relationship with Hao Heping and facilitate future business development. If Hao Heping and Mr. Chen are old friends, there are still emotional factors in it. Although they asked for it on their own initiative, it kind of means "Zhou Yu hits Huang Gai" after all.But for Hao Heping's second accusation, Hao Heping is not easy to defend.The procuratorate accused Hao Heping of taking advantage of his position in charge of the approval of medical device products to help Zhejiang, Shanghai, Shaanxi, Guangdong and other medical device companies obtain approval for the production of medical device products, and accepted a Guangzhou Honda Accord worth 260,000 yuan from the above-mentioned companies. Brand car, golf club travel membership card and 3 membership cards worth more than 500,000 yuan. Let's talk about the origin of Honda cars first. At the beginning of 2002, when Hao Heping went to Jiangsu for a meeting, he was introduced to Ms. Bao, the chairman of a medical device company in Zhejiang. Because Ms. Bao’s company also makes medical devices, she had many work-related problems and asked Hao Heping for help. For peace and help, Ms. Bao naturally tried every means to get close to Hao Heping. In August 2003, when Hao Heping was in Shanghai for a meeting, he ran into Ms. Bao again. "Old friends" met and chatted casually.Hao Heping said while chatting: "I am going to buy a Honda Accord, but the Honda Accord in the Beijing market is not easy to buy. It needs to add more than 20,000 yuan, which is too bad." The extremely smart Ms. Bao saw Hao Heping extended an "olive branch", and she immediately released the "Peace Dove".Ms. Bao said: "I have a cousin who sells cars, and I can help you buy a Honda Accord for free." Hao Heping was naturally happy to save tens of thousands of dollars, so he asked Ms. Bao to help buy one.And said very seriously: "Let me give you the money to buy the car first." Where would Ms. Bao ask for Director Hao's money? She said politely, "Let's talk about it after the purchase is over." In September 2003, Ms. Bao really asked her cousin who was the general manager of the car sales company to buy Hao Heping a Honda Accord without a price increase.This cautious cousin also went to Beijing with the vice president of his company to hand over the car to Hao Heping, and took Hao Heping's lover Fu Yuqing to get the license plate on the car.After completing all the formalities, Ms. Bao's cousin handed over all the invoices to Hao Heping, and the car cost a total of 259,800 yuan. However, when Hao Heping wanted to give money to Ms. Bao's cousin, the cousin didn't want it.Hao Heping felt ashamed, and called Ms. Bao to ask for the fare, but Ms. Bao said nothing, so Hao Heping didn't give Ms. Bao any money. It's very simple. The reason why Ms. Bao bought a car for Hao Heping is because Ms. Bao's company produces medical equipment. It is more convenient to do things.Of course, Hao Heping would reciprocate. Afterwards, the disposable medical devices produced by Ms. Bao's company were given the green light all the way with the approval documents signed by Hao Heping on the Medical Device Product Approval Form of the Bureau of Drug Inspection. Let's talk about golf membership cards. Hao Heping, who looks a bit rustic, has a very fashionable hobby, which is playing golf.Of course, in today's China, golf is still a luxury sport played by the rich.However, Director Hao is different from other corrupt officials who basically have mistresses. He doesn't have a mistress, he only has this elegant-sounding hobby. However, the price of this refined taste is high.It is this hobby that accounts for more than half of Hao Heping's bribes.The aforementioned bribes for house renovation and Honda cars totaled 460,000 yuan, while the three golf membership cards Hao Heping took bribes exceeded 500,000 yuan. The high price did not bother Hao Heping. He was reluctant to use his salary to play, so he had to use his power to "exchange".Hao Heping's interest in golf is extraordinary. He not only flies around the country to play golf like a taxi, but also looks for the most high-end golf courses.For this reason, he often asks his golf friends where the course is the best. As long as he finds a course he is satisfied with, he will ask the bosses of the medical device company he approved for a membership card. In 2002, Hao Heping asked the boss of a medical device company in Shaanxi for a golf membership card for a membership fee of 35,000 yuan. In 2003, Hao Heping asked the boss of a Shanghai medical device company for a membership card and golf clubs, worth 220,000 yuan, and the membership name was "He Ping". In 2004, Hao Heping asked the boss of a medical device company in Guangzhou for a golf membership card worth 30,000 US dollars, and the membership name was "He Ping".At the same time, the boss in Guangzhou also gave Hao Heping's lover, Fu Yuqing, a secondary card. Hao Heping's third charge was brought to him by a man named Wang Wei from a company in Guangzhou mentioned in the previous article.Hao Heping once gave some help to a company in Guangzhou in product development and listing. There was a person named Wang Wei in this company who was in charge of the company’s external relations. Their company wanted to thank Hao Heping, but they couldn’t give him money, so Wang Wei did it. Four air pistols, one air revolver and some bullets were "given to Director Hao for fun."Wang Wei said at the time that they were imitation toy guns. Hao Heping didn't like these things very much at first, so he almost put them away without even looking at them.However, after Hao Heping's case was appraised, it was concluded that the five guns submitted for inspection could be fired normally, and they were lethal to the human body at close range after firing.As a result, Hao Heping not only committed the crime of illegal possession of firearms, but was also sentenced to 3 years in prison for this crime.On this charge, Hao Heping's crime was simply too ignorant.Later, he kept aggrieved and said in court, "I think these are toy guns, and they are not lethal."When the prosecutor asked him if he knew about my country's gun control regulations, Hao Heping kept shaking his head and said "I don't know." Interpretation of "hidden rules" and the relationship economy under the power of approval On November 28, 2006, the Beijing No. 1 Intermediate People's Court made the first-instance judgment. The court held that: the defendant Hao Heping, as a state employee, took advantage of his position to solicit and accept other people's property and seek benefits for others. It has constituted the crime of accepting bribes; in violation of the national gun management regulations, illegal possession of firearms, his behavior has constituted the crime of illegal possession of firearms.The defendant, Fu Yuqing, colluded with state functionaries and took advantage of his position to extort other people's property and jointly possess it. His behavior has constituted the crime of accepting bribes. The first-instance judgment of the court was: Hao Heping was sentenced to 13 years in prison for the crime of accepting bribes; he was sentenced to 3 years in prison for the crime of illegal possession of guns; he was sentenced to 15 years in prison for the crime of illegal possession of firearms;Fu Yuqing was sentenced to 5 years in prison for the crime of accepting bribes. Now it is a bit outdated to rely Hao Heping's crimes on the "59-year-old phenomenon", but Hao Heping did reinterpret this phenomenon again.In terms of the amount of bribes, compared with Hao Heping's absolute power, his appetite is not too big.In terms of personal property, Hao Heping, who has a lot of money, lost his freedom for less than 1 million yuan, and he would not do it if he was killed.But he did it anyway, and he did it pretty badly.Why?This is the mentality of making a fortune before retirement, which made him open his greedy mouth by accident. In addition, there is another problem that we cannot avoid, which is Hao Heping's absolute power.The reason why many corrupt officials are qualified to embezzle and accept bribes is because they have power that others do not have.He didn't even need to ask himself, someone would send him a lot of money. Under the unspoken rules of this "power-for-money transaction", Hao Heping's refusal to accept bribes seemed out of tune with others.Therefore, Hao Heping not only accepted bribes, but also accepted them with peace of mind. Absolute power, greed for money, and gray income made some cadres like Hao Heping, who once held real power, take advantage of their positions to do little work to satisfy their greed, and finally tied their hands and feet with strings of money.Therefore, although the legal income of high-level officials like Hao Heping is already high, they find it difficult to hold back in the face of the huge temptation of high consumption. Although high consumption does not mean crimes, they continue to accept other people's "invitations" to have fun. It is often the beginning of a crime, and you gradually fall into the "money trap" set by others, and the consequences are naturally predictable. However, we can't help seeing the existence of "hidden rules" sadly.An insider in the medical industry said: "If medical device products are to be unblocked, not only must the hospitals be opened up, but the regulatory authorities must also be enshrined as gods. The Industrial and Commercial Bureau, the Health Bureau, the Taxation Bureau, and the Food and Drug Administration must all be missing. It's the FDA." It is almost a well-known fact that the medical industry can make huge profits. Therefore, sparing no effort to get through the approval joints is undoubtedly a "stepping stone" to gain huge profits. Hao Heping was photographed by these "stepping stones". It has become an open secret and "hidden rule" in many industries to manage the officials who hold the power of examination and approval, thus creating a lot of room for rent-seeking power.Because of the existence of "approval", the "bad guy" of "relationship economy" was born. Although my country is no longer a planned economy, it is also a market economy led by the administration.Approval plays a very important role in a market economy, which creates the possibility of power rent-seeking.Many regulatory departments have not played the role of fair administration very well, and the resulting market behavior cannot be fair market behavior. This "hidden rule" that binds officials and businessmen into the same line of interest has clearly led to the corrupt behavior of "officials and businessmen as one family".To put it bluntly, this is a relationship economy formed under the absolute power of "approval". We used to just call this kind of rule "going through the back door".