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| Chinese General Charged in Graft Inquiry | |
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| BEIJING — The unmarked People’s Liberation Army apartment complex ensconced amid high-rises along Beijing’s East Fourth Ring Road reveals nothing extraordinary in front. But tucked in the back are three villas trimmed in a mock colonial motif, with white gridded windows and red tiled roofs. | BEIJING — The unmarked People’s Liberation Army apartment complex ensconced amid high-rises along Beijing’s East Fourth Ring Road reveals nothing extraordinary in front. But tucked in the back are three villas trimmed in a mock colonial motif, with white gridded windows and red tiled roofs. |
| A guard at the gate one recent afternoon said the villas were guesthouses for top visiting officers. People with high-level military ties offered further insight: The villas are among hundreds of “generals’ mansions” built by Gu Junshan, the lieutenant general at the center of what may be the biggest corruption scandal to engulf the Chinese military. | A guard at the gate one recent afternoon said the villas were guesthouses for top visiting officers. People with high-level military ties offered further insight: The villas are among hundreds of “generals’ mansions” built by Gu Junshan, the lieutenant general at the center of what may be the biggest corruption scandal to engulf the Chinese military. |
| On Monday, prosecutors formally charged General Gu with bribery, embezzlement, misuse of state funds and abuse of power, the outcome of a far-reaching inquiry under President Xi Jinping that could foreshadow unprecedented criminal prosecutions of other high-ranking military figures. | On Monday, prosecutors formally charged General Gu with bribery, embezzlement, misuse of state funds and abuse of power, the outcome of a far-reaching inquiry under President Xi Jinping that could foreshadow unprecedented criminal prosecutions of other high-ranking military figures. |
| The charges against General Gu, reported by the official Xinhua news agency, came two years after he was quietly dismissed as deputy chief of the People’s Liberation Army’s General Logistics Department, a position that had afforded him enormous influence over contracts and procurement for the world’s largest army. | The charges against General Gu, reported by the official Xinhua news agency, came two years after he was quietly dismissed as deputy chief of the People’s Liberation Army’s General Logistics Department, a position that had afforded him enormous influence over contracts and procurement for the world’s largest army. |
| An internal inquiry accused him of presiding over a vast land development racket that hoarded kickbacks, bought promotions and enabled him and his family to amass dozens of expensive residences, including places where investigators found stockpiles of high-end liquor, gold bullion and cash, according to people briefed on the investigation. | An internal inquiry accused him of presiding over a vast land development racket that hoarded kickbacks, bought promotions and enabled him and his family to amass dozens of expensive residences, including places where investigators found stockpiles of high-end liquor, gold bullion and cash, according to people briefed on the investigation. |
| Even as President Xi presses a sweeping campaign against graft within the Communist Party, he has seized on the case against General Gu to pursue a parallel drive to clean up the 2.3 million-member armed forces. In internal speeches, he has railed against a wider “Gu Junshan phenomenon” of military corruption, demanded action to “dredge the soil that produced Gu Junshan,” and threatened to bring down both “large and small Gu Junshans,” said a retired official and associate of Mr. Xi’s. | Even as President Xi presses a sweeping campaign against graft within the Communist Party, he has seized on the case against General Gu to pursue a parallel drive to clean up the 2.3 million-member armed forces. In internal speeches, he has railed against a wider “Gu Junshan phenomenon” of military corruption, demanded action to “dredge the soil that produced Gu Junshan,” and threatened to bring down both “large and small Gu Junshans,” said a retired official and associate of Mr. Xi’s. |
| In doing so, Mr. Xi is challenging military elders who promoted General Gu and have sought to protect him and themselves from the expanding investigation, the people with knowledge of the inquiry said. Mr. Xi’s goal, they said, is to transform a service larded with pet projects and patronage networks into a leaner fighting force more adept at projecting power abroad and buttressing party rule at home — and to strengthen his own authority. | In doing so, Mr. Xi is challenging military elders who promoted General Gu and have sought to protect him and themselves from the expanding investigation, the people with knowledge of the inquiry said. Mr. Xi’s goal, they said, is to transform a service larded with pet projects and patronage networks into a leaner fighting force more adept at projecting power abroad and buttressing party rule at home — and to strengthen his own authority. |
| His campaign presents him with a cudgel to enforce tighter control over an institution that some say has drifted from the party leadership’s orbit even as it remains a bulwark of one-party rule. The investigation into General Gu has shaken the army because of the brazen scale of his activities — estimates of his assets range from several hundred million to a few billion dollars — and because it threatens some of its most senior figures. | His campaign presents him with a cudgel to enforce tighter control over an institution that some say has drifted from the party leadership’s orbit even as it remains a bulwark of one-party rule. The investigation into General Gu has shaken the army because of the brazen scale of his activities — estimates of his assets range from several hundred million to a few billion dollars — and because it threatens some of its most senior figures. |
| General Gu had provided investigators with enough information to target powerful patrons, principally Xu Caihou, the army’s second-ranking general and a Politburo member before retiring in 2012, people with knowledge of the inquiry said. These people, who include retired military officers, foreign diplomats and children of former senior leaders, spoke on condition of anonymity for fear of retaliation. | General Gu had provided investigators with enough information to target powerful patrons, principally Xu Caihou, the army’s second-ranking general and a Politburo member before retiring in 2012, people with knowledge of the inquiry said. These people, who include retired military officers, foreign diplomats and children of former senior leaders, spoke on condition of anonymity for fear of retaliation. |
| Several said that General Xu had come under restrictions from investigators. If President Xi were to move formally against General Xu, he would be entering uncharted territory. No military leader of General Xu’s stature has ever been toppled for corruption. | Several said that General Xu had come under restrictions from investigators. If President Xi were to move formally against General Xu, he would be entering uncharted territory. No military leader of General Xu’s stature has ever been toppled for corruption. |
| Mr. Xi, unlike his immediate predecessors, took over the military and the party at the same time — in November 2012 — and brought strong P.L.A. ties. After university, he served as an aide to a top military official. His father was a revolutionary guerrilla commander. His wife is a singer in the P.L.A.'s song-and-dance troupe. Gen. Liu Yuan, the political commissar of the logistics department who is credited with helping to initiate the anticorruption drive, is among his oldest comrades. | Mr. Xi, unlike his immediate predecessors, took over the military and the party at the same time — in November 2012 — and brought strong P.L.A. ties. After university, he served as an aide to a top military official. His father was a revolutionary guerrilla commander. His wife is a singer in the P.L.A.'s song-and-dance troupe. Gen. Liu Yuan, the political commissar of the logistics department who is credited with helping to initiate the anticorruption drive, is among his oldest comrades. |
| While his predecessors struggled to manage the military, Mr. Xi regards the P.L.A. as a bastion of support and has embraced its vision of China as a more robust power, diplomats and analysts said. | While his predecessors struggled to manage the military, Mr. Xi regards the P.L.A. as a bastion of support and has embraced its vision of China as a more robust power, diplomats and analysts said. |
| In an internal speech soon after taking office, he made a point of blaming the collapse of the Soviet Union in part on Mikhail S. Gorbachev’s losing control of the military. | In an internal speech soon after taking office, he made a point of blaming the collapse of the Soviet Union in part on Mikhail S. Gorbachev’s losing control of the military. |
| “His implication was, ‘I’m going to take charge of the military for real. I’m not going to be like the last two administrations, putting up with you as you bumble around,' ” said the associate of Mr. Xi. | “His implication was, ‘I’m going to take charge of the military for real. I’m not going to be like the last two administrations, putting up with you as you bumble around,' ” said the associate of Mr. Xi. |
| Mr. Xi has ordered a stream of antigraft measures, audits and criticism sessions; enlarged drills to upgrade “battle readiness”; and advanced contentious plans to restructure a military bureaucracy criticized as bloated and outmoded. Those plans are expected to overhaul the command structure, streamline the army’s procurement practices and significantly downsize nonmilitary divisions such as the performance troupes. | Mr. Xi has ordered a stream of antigraft measures, audits and criticism sessions; enlarged drills to upgrade “battle readiness”; and advanced contentious plans to restructure a military bureaucracy criticized as bloated and outmoded. Those plans are expected to overhaul the command structure, streamline the army’s procurement practices and significantly downsize nonmilitary divisions such as the performance troupes. |
| “Xi Jinping is highly aware of the deepening complexities in China’s neighborhood, so the P.L.A. has never been more in demand,” said Zhu Feng, an international security expert at Peking University. “The P.L.A. spends a lot of money, but the question is, how are they following up on all the spending?” | “Xi Jinping is highly aware of the deepening complexities in China’s neighborhood, so the P.L.A. has never been more in demand,” said Zhu Feng, an international security expert at Peking University. “The P.L.A. spends a lot of money, but the question is, how are they following up on all the spending?” |
| Corruption has bedeviled the P.L.A. since the market reforms of the 1980s, when it was permitted to venture into industry and earn the funds to modernize its arsenal and sustain its troops. Widespread smuggling, graft and profiteering ensued. It took years of debate for the party in 1998 to order the military to divest from business. But as Beijing increased military spending, officers tapped their own resources for profit. | Corruption has bedeviled the P.L.A. since the market reforms of the 1980s, when it was permitted to venture into industry and earn the funds to modernize its arsenal and sustain its troops. Widespread smuggling, graft and profiteering ensued. It took years of debate for the party in 1998 to order the military to divest from business. But as Beijing increased military spending, officers tapped their own resources for profit. |
| The P.L.A. retains extensive land holdings, which have ballooned in value in line with property prices across the country, and real estate transactions are considered its biggest source of corruption. One former military officer said generals sometimes evaded regulations limiting the size of the residences by building ceilings twice the standard height. “That way they can add a floor later,” he said. | The P.L.A. retains extensive land holdings, which have ballooned in value in line with property prices across the country, and real estate transactions are considered its biggest source of corruption. One former military officer said generals sometimes evaded regulations limiting the size of the residences by building ceilings twice the standard height. “That way they can add a floor later,” he said. |
| Bribery for promotions is believed to be more institutionalized than within the party. Insiders say an endorsement for a general’s slot can carry a price tag of hundreds of thousands of dollars. Procurement is plagued by waste and fraud. One recent order for fighter jet canopies, for example, cost nearly three times more than a state aviation contractor’s bid and resulted in products riddled with flaws, according to an academic with the institution that designed the part. | Bribery for promotions is believed to be more institutionalized than within the party. Insiders say an endorsement for a general’s slot can carry a price tag of hundreds of thousands of dollars. Procurement is plagued by waste and fraud. One recent order for fighter jet canopies, for example, cost nearly three times more than a state aviation contractor’s bid and resulted in products riddled with flaws, according to an academic with the institution that designed the part. |
| Such abuses proliferated under Mr. Xi’s predecessor, Hu Jintao, who was often seen as ineffectual and disengaged from military affairs. It was during that period that General Gu oversaw a multibillion-dollar construction boom as head of the infrastructure and barracks division. He built several hundred outsize villas for high-ranking officers, profited from scores of land deals and acquired three dozen homes in central Beijing alone, the military insiders said. | Such abuses proliferated under Mr. Xi’s predecessor, Hu Jintao, who was often seen as ineffectual and disengaged from military affairs. It was during that period that General Gu oversaw a multibillion-dollar construction boom as head of the infrastructure and barracks division. He built several hundred outsize villas for high-ranking officers, profited from scores of land deals and acquired three dozen homes in central Beijing alone, the military insiders said. |
| Since a military scholar first acknowledged the case against General Gu last August, two Chinese media outlets, Global People and Caixin, have pierced the secrecy surrounding it with investigative reports. | Since a military scholar first acknowledged the case against General Gu last August, two Chinese media outlets, Global People and Caixin, have pierced the secrecy surrounding it with investigative reports. |
| They portrayed General Gu as a stocky farmer’s son who made up for his mediocrity with networking skills. He married a superior’s daughter, plied higher-ups and underlings with perks, and recently commissioned a biography and a grave site that grossly inflated his father’s revolutionary credentials, they reported. | They portrayed General Gu as a stocky farmer’s son who made up for his mediocrity with networking skills. He married a superior’s daughter, plied higher-ups and underlings with perks, and recently commissioned a biography and a grave site that grossly inflated his father’s revolutionary credentials, they reported. |
| In the family’s hometown in central China, his brother, a former village party chief, won local real estate deals and military supply contracts with his backing, they reported. General Gu’s wife, a city police official, worked to intercept villagers who took their grievances against the land deals to Beijing. The family’s most notorious redevelopment project was its palatial mansion, for which it hired architects and painters connected to Beijing’s Forbidden City, the former home of China’s emperors. | In the family’s hometown in central China, his brother, a former village party chief, won local real estate deals and military supply contracts with his backing, they reported. General Gu’s wife, a city police official, worked to intercept villagers who took their grievances against the land deals to Beijing. The family’s most notorious redevelopment project was its palatial mansion, for which it hired architects and painters connected to Beijing’s Forbidden City, the former home of China’s emperors. |
| General Liu first proposed action against General Gu in late 2011, said two elite party members close to General Liu. Mr. Hu then asked the military’s disciplinary agency to suspend General Gu twice, they said, but encountered resistance from top military leaders. Only after Mr. Hu ordered the party’s own disciplinary body to investigate was the military forced to take action. | General Liu first proposed action against General Gu in late 2011, said two elite party members close to General Liu. Mr. Hu then asked the military’s disciplinary agency to suspend General Gu twice, they said, but encountered resistance from top military leaders. Only after Mr. Hu ordered the party’s own disciplinary body to investigate was the military forced to take action. |
| Even then, investigators moved slowly. By autumn 2012, the military was preparing an indictment accusing the general of pocketing less than $1 million in bribes and kickbacks, said the retired official. But Mr. Xi was incensed by the case and, after he took office, widened the scope of the inquiry. | Even then, investigators moved slowly. By autumn 2012, the military was preparing an indictment accusing the general of pocketing less than $1 million in bribes and kickbacks, said the retired official. But Mr. Xi was incensed by the case and, after he took office, widened the scope of the inquiry. |
| A turning point came in January, when investigators raided a storage chamber General Gu kept in his home village and hauled off four truckloads of items, including 20 crates of liquor and a pure gold statue of Chairman Mao, Caixin reported. | A turning point came in January, when investigators raided a storage chamber General Gu kept in his home village and hauled off four truckloads of items, including 20 crates of liquor and a pure gold statue of Chairman Mao, Caixin reported. |
| China’s Defense Ministry did not answer a request for comment on the case. | China’s Defense Ministry did not answer a request for comment on the case. |
| One question under scrutiny is whether General Gu’s rapid rise — five high-level promotions in eight years, over repeated objections from the head of the logistics department — involved payoffs of retired military leaders, particularly General Xu. He is considered a protégé of Jiang Zemin, the former president, and once oversaw appointments. | One question under scrutiny is whether General Gu’s rapid rise — five high-level promotions in eight years, over repeated objections from the head of the logistics department — involved payoffs of retired military leaders, particularly General Xu. He is considered a protégé of Jiang Zemin, the former president, and once oversaw appointments. |
| After he retired, investigators found a hoard of expensive gifts, including four elephant tusks, in a locked storeroom next to his former office, a businesswoman briefed by military officers said. | After he retired, investigators found a hoard of expensive gifts, including four elephant tusks, in a locked storeroom next to his former office, a businesswoman briefed by military officers said. |
| “Gu Junshan gave him up,” said the businesswoman, after meeting with a member of the military task force investigating the case. “He said that Gu gave up information on just about everyone.” | “Gu Junshan gave him up,” said the businesswoman, after meeting with a member of the military task force investigating the case. “He said that Gu gave up information on just about everyone.” |