A FORMER section chief with Shenzhen Municipal Local Taxation Bureau stood trial for alleged corruption Monday.

    Ye Yongdong, the bureau’s former section chief, was sentenced to 10 years in prison at his first trial in Nanshan District for purchasing an apartment for 2.8 million yuan (US$450,762), 1 million yuan lower than its contract price.

    The price of the apartment in Xiangmihu, Futian District, was 3.8 million yuan in 2006.

    Ye appealed after the first trial, insisting that the price he paid for the apartment, which was appraised at 3.48 million yuan, wasn’t much higher than the market price at the time of purchase and so it couldn’t be treated as a bribe.

    Ye’s lawyer argued that the 3.8 million yuan price is what appeared on the contract for the apartment and prosecutors should determine the price according to the average price of apartments sold in 2006. In addition, the developer is allowed sell the apartment at a lower promotional price to attract buyers.

    According to the prosecutors, the bureau fined the Shenzhen developer, from which Ye later bought the apartment, 2.4 million yuan in March 2005 for tax evasion. The prosecutors said Ye hadn’t thoroughly investigated the company over other issues raised by whistleblowers.

    In 2006, Ye bought the apartment from the company. The developer agreed to let Ye pay 2.8 million yuan for the 3.8 million yuan apartment. Ye asked his friend, Zhang, to sign the contract for him and then transfer the apartment ownership to him. In 2010, out of fear of being exposed, Ye signed a supplementary contract stipulating that Ye owed 1 million yuan to Zhang. Ye was supposed to pay back the debt over three years.

    To cover the crime, Ye transferred 1 million yuan to Zhang’s accounts in 2011 and 2012. Later in 2012, at the request of Ye, Zhang transferred 900,000 yuan to Ye’s accounts in two transactions and gave Ye the remaining 100,000 yuan in cash, the prosecutors said.

    In March 2013, Shenzhen Intermediate People’s Court rejected Nanshan People’s Court’s verdict and sent the case back there for a retrial. (Han Ximin)