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Latest Corruption Scourge in China Centers on Housing ‘House Sister,’ Collector of Properties, Held in Chinese Graft Case
(about 9 hours later)
HONG KONG — The Chinese police said on Tuesday that they had detained Gong Aiai, popularly known as “House Sister,” in a corruption case that has gripped China for weeks after it was revealed that Ms. Gong and her family had accumulated dozens of houses and other properties. She was caught on Sunday, the police said, and is being held on suspicion of forging official identity papers and other documents she used in an effort to escape detection. HONG KONG — The Chinese police said on Tuesday that they had detained Gong Aiai, popularly known as House Sister, in a corruption case that has gripped China for weeks after it was revealed that Ms. Gong and her family had accumulated dozens of houses and other properties. She was caught on Sunday, the police said, and is being held on suspicion of forging official identity papers and other documents she used in an effort to escape detection.
Ms. Gong and her collection of properties struck a raw nerve with millions of Chinese who are outraged over graft and brazen self-enrichment by officials and their confederates, and frustrated by the high cost of homes in cities where it seems many rich and powerful people have invested in housing that often sits empty.Ms. Gong and her collection of properties struck a raw nerve with millions of Chinese who are outraged over graft and brazen self-enrichment by officials and their confederates, and frustrated by the high cost of homes in cities where it seems many rich and powerful people have invested in housing that often sits empty.
“House Sister is a microcosm of China’s problems,” said Li Xinde, a freelance journalist who runs a Web site devoted to exposing official corruption. “Many ordinary people simply can’t afford to buy a single home, but ‘House Sister’ suddenly accumulated one after another. It’s a classic case that shows the crazy extent of the intertwining of money and power in China.” “House Sister is a microcosm of China’s problems,” said Li Xinde, a freelance journalist who runs a Web site devoted to exposing official corruption. “Many ordinary people simply can’t afford to buy a single home, but House Sister suddenly accumulated one after another. It’s a classic case that shows the crazy extent of the intertwining of money and power in China.”
A former vice president of the Shenmu Rural Commercial Bank in the northwestern province of Shaanxi, Ms. Gong owned 41 residential and commercial properties in Beijing alone, the police in the capital said last week. They said Ms. Gong bought at least 10 of the properties by using an illegally obtained national identity card and Beijing residence registration, apparently to try to evade detection and skirt limits on nonlocal residents buying housing in Beijing.A former vice president of the Shenmu Rural Commercial Bank in the northwestern province of Shaanxi, Ms. Gong owned 41 residential and commercial properties in Beijing alone, the police in the capital said last week. They said Ms. Gong bought at least 10 of the properties by using an illegally obtained national identity card and Beijing residence registration, apparently to try to evade detection and skirt limits on nonlocal residents buying housing in Beijing.
That is not counting the two properties that earlier newspaper reports said she held in the northwestern city of Xi’an, and the two in her home county, Shenmu. That is not counting the two properties that earlier newspaper reports said she held in the northwestern city of Xi’an, and two in her home county, Shenmu.
Before being taken into custody on Sunday, Ms. Gong had disappeared from public view for about two weeks, and many bloggers accused the police of failing to pursue her. In an interview in mid-January, she said the money for the property came from legitimate family investments. The police statement issued by state media said that Ms. Gong had submitted her resignation from the bank in June, but the bank board formally approved it on Jan. 2. Before being taken into custody on Sunday, Ms. Gong had disappeared from public view for about two weeks, and many bloggers accused the police of failing to pursue her. In an interview in mid-January, she said the money for the property came from legitimate family investments. The police statement issued by state news media said that Ms. Gong had submitted her resignation from the bank in June, but that the bank board formally approved it on Jan. 2.
The country’s top leader, Xi Jinping, has repeatedly vowed to stamp out graft and greed by officials since he was appointed head of the ruling Communist Party in November. Emboldened by such promises, Chinese Internet sites and newspapers have published a spate of accusations about officials and associates exploiting their illicit wealth and connections to acquire luxury-brand watches, expensive four-wheel drives and other symbols of excess. Those accusations have in turn kindled growing demands for officials to disclose their wealth to the public. The country’s top leader, Xi Jinping, has repeatedly vowed to stamp out graft and greed by officials since he was appointed head of the ruling Communist Party in November. Emboldened by such promises, Chinese Internet sites and newspapers have published a spate of accusations about officials and associates exploiting their illicit wealth and connections to acquire luxury-brand watches, expensive four-wheel drive vehicles and other symbols of excess. Those accusations have in turn kindled growing demands for officials to disclose their wealth to the public.
Almost inevitably after “House Sister” rose to notoriety, the press has given each subsequent case a similar moniker. Zhang Xiuting, called “house brother,” is an anticorruption official in northeast China who is under investigation for amassing 19 properties along with his former wife. Shenzhen, in southern China, has offered up a “house uncle,” Zhou Weisi, a local official whose family was accused on the Internet of piling up 80 properties and 20 cars. Almost inevitably after House Sister rose to notoriety, the news media have given each subsequent case a similar moniker. Zhang Xiuting, called House Brother, is an anticorruption official in northeast China who is under investigation for amassing 19 properties along with his former wife. Shenzhen, in southern China, has offered up a House Uncle, Zhou Weisi, a local official whose family was accused on the Internet of piling up 80 properties and 20 cars.
Zhai Zhenfeng, a former housing administration official in Zhengzhou, capital of Henan Province, in central China, was arrested in early January after accusations emerged that he and his wife illegally obtained and sold a hundred or more apartments. Zhai Zhenfeng, a former housing administration official in Zhengzhou, capital of Henan Province, in central China, was arrested in early January after accusations emerged that he and his wife illegally obtained and sold 100 or more apartments.
Such exploits, however, appear puny next to those of Zhao Haibin, a party official and former public security chief in Lufeng in southern China, who was accused by a local businessman of accumulating at least 192 apartments and other units of real estate, the Southern Metropolitan Daily reported on Tuesday. Mr. Zhao told the paper he was merely minding the properties for his younger brother.Such exploits, however, appear puny next to those of Zhao Haibin, a party official and former public security chief in Lufeng in southern China, who was accused by a local businessman of accumulating at least 192 apartments and other units of real estate, the Southern Metropolitan Daily reported on Tuesday. Mr. Zhao told the paper he was merely minding the properties for his younger brother.
Many of these cases appear to have come to light only after rivals or disgruntled associates leaked accusations on the Internet.Many of these cases appear to have come to light only after rivals or disgruntled associates leaked accusations on the Internet.
Nearly all the scandals have also involved officials using multiple identity cards and household residence permits, called “hukou,” in efforts to evade detection and the limits that many big cities impose on how many residences an individual can buy.Nearly all the scandals have also involved officials using multiple identity cards and household residence permits, called “hukou,” in efforts to evade detection and the limits that many big cities impose on how many residences an individual can buy.

Patrick Zuo contributed research from Beijing.

Patrick Zuo contributed research from Beijing.