The first hearing in the embezzlement trial of Yu Zhifei, the
former boss of China's Formula 1, was postponed yesterday by a
court in Anhui Province because the defendant plans to
call witnesses.
Wuhu Intermediate People's Court has not announced a new date
for the hearing.
Yu was formerly the boss of the State-owned Shenhua Group, which
sponsored Shanghai Shenhua Football Club. He later became the boss
of Shanghai International Circuit Management Development Co.
Yu is one of the senior officials and business heads that were
implicated in the 3.4 billion yuan (US$447 million) social security
fund scandal, which led to the arrest of Shanghai's former Party
chief, Chen Liangyu.
However, Yu's indictment does not directly connect him to the
scandal. It alleges that he embezzled 1.05 million yuan from the
football club and a trading company under the Shenhua Group to buy
himself a house. It also alleges that he confessed his wrongdoings
and has sought a lenient sentence.
In 1997, the Shanghai Huangpu District Government approved Yu's
request to have his company buy him a house.
Before 1999, employees of government and State-owned enterprises
were given houses or compensated. Yu allegedly found a 2.34 million
yuan apartment, but claimed it cost 1.18 million yuan, according to
Anhui Business Daily. The paper said Yu was worried that
having an expensive residence would affect his reputation. After
the company gave him the 1.18 million yuan, he allegedly embezzled
800,000 yuan on one occasion and 250,000 yuan on another to pay for
the apartment.
He was asked to assist the investigation of the scandal last
October and was arrested later. The first hearing was scheduled
yesterday at 3:30 PM.
But the Wuhu Intermediate People's Court told the assembled
media that Yu's lawyer said they had found a new witness and
requested to postponement.
According Chinese practice, major cases that involve senior
officials are tried in other places to avoid political influence.
Other suspects in the case are standing trial in Anhui and Jilin provinces.
They include Chen Chaoxian, former district chief of Shanghai's
Changning District and Wu Minglie, president of New Huangpu
Group.
(China Daily August 17, 2007)