“Rotting From Within”

People have been calling this piece ‘important,’ and given how much detail John Garnaut has provided, this might be the most in-depth look at the current level of corruption in the PLA we’ve seen recently:

“No country can defeat China,” Liu told about 600 officers in his department in unscripted comments to an enlarged party meeting on the afternoon of Dec. 29, according to sources who have verified notes of his speech. “Only our own corruption can destroy us and cause our armed forces to be defeated without fighting.” This searing indictment of the state of China’s armed forces, coming from an acting full three-star general inside the PLA, has no known modern precedent.

There is no way to independently verify Liu’s withering assessment of the extent of corruption in the PLA, but he is well-positioned to make it. His professional experience includes a decade in the government of the central Chinese province of Henan and a decade in the paramilitary, taking him beyond narrow lines of command and patronage. His logistics department is integrated with all other arms of the Chinese military and his status as the descendant of a high-ranking leader, or princeling, enables privileged informal networks across military ranks and the civilian side of the party-state.

The practice of buying promotions inside the military is now so widespread, Liu noted, that even outgoing President Hu Jintao, who also leads the military from his position atop the CMC, had vented his frustration. “When Chairman Hu severely criticised ‘buying and selling official posts,’ can we sit idle?”

PLA veterans told me they are organising “rights protection” movements to protest their inadequate pensions, which they contrast with the luxury lifestyles they observe among serving officers. Retired officers have told me that promotions have become so valuable that it has become routine to pay the equivalent of hundreds of thousands of dollars in bribes to even be considered for many senior positions.

The February address, the second and most detailed of Liu’s corruption speeches, suggests the problems run much deeper than anecdotal evidence suggests. “Certain individuals exchange public money, public goods, public office and public affairs for personal gain, flouting the law and party codes of conduct, even resorting to verbal abuse and threats, clandestine plots and set ups,” he said.

In that scandal, widely covered in official media, Yuanhua used military connections to evade a staggering $6.3 billion in taxes by smuggling everything from cigarettes and luxury cars to fully laden oil tankers. The case brought down hundreds of provincial and military officials, including the head of a major PLA intelligence division. It also enabled Jiang to consolidate his grip on the military.

The outside world caught another limited glimpse of military corruption in December 2005, when the deputy commander of the navy, Adm. Wang Shouye, was detained for unspecified “economic crimes.” Official reports said he was brought down by a mistress, while Hong Kong’s Asia Weekly said he kept five mistresses and stole almost 20 million dollars.

In late January, Liu followed up his tough talk by ripping out one allegedly cancerous node, the deputy director of his Logistics Department, Gu Junshan, after a protracted internal struggle. Gu was the first military official of such a high rank to be toppled since Admiral Wang in 2005. A source with direct knowledge of the case described General Gu extorting county officials with threats of violence and buying his way up through the PLA hierarchy. The source, whose allegations could not be independently confirmed, said that Gu, together with friends, relatives, and patrons in and beyond the military, profited immensely from a property development in Shanghai, distributed hundreds of PLA-built villas in Beijing as gifts to his friends and allies, and generally ran his construction and infrastructure division like a mafia fiefdom.

Chen, the son of one of China’s 10 great marshals and son-in-law of a legendary commander, Gen. Su Yu, runs a successful infrastructure investment firm, Standard International. He opted out of the government and military system after the Tiananmen massacres. He told me the 1989 bloodshed left a vacuum of purpose and integrity within the PLA, which money has rushed to fill. “The problem has really got out of hand in the last 20 years,” he said. “After the June 4 movement, when ‘opposing corruption’ was the protestors’ slogan, some of the officers no longer cared about anything. They just made money and broke all the rules.”

A second princeling who has recently retired from a ministerial-level position told me discipline and unity in the PLA has deteriorated in the past decade. He said an unprecedented leadership vacuum has opened up at the top of the military because President Hu never consolidated his grip, even after more than nine years at the helm of the Communist Party and seven years chairing the Central Military Commission.

Few analysts believe the PLA can seriously tackle its own corruption problems without decisive intervention from the civilian leadership. Whether Hu or his likely successor Xi will have the political capital to spend remains an open question.

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