Former CNPC CEO Xu Han was sentenced to 25 years in prison for corruption. The manufacturer must pay 84 million yuan and dismantle the foundation.

Xu Han, the former CEO of China National Petroleum Refining Division, was sentenced to 25 years for corruption. One of the manufacturers was found to have increased the original procurement budget of only 30 million yuan to 200 million yuan, and secretly shared 42 million yuan of improper benefits with Xu Han. The judge ruled that the manufacturer should pay 84 million yuan to the China Petroleum Court. Even the built cement base was ordered to "remove, remove and backfill all the earthwork."

The judgment pointed out that in 2019, the heat exchange gas cooling water of the fifth and sixth media group plants of the Dalin Refinery of China National Petroleum Corporation's Refining Division was intentionally changed to an ice water system. However, the person in charge of the original company named Li thought it was profitable after learning about the case, and through a broker named Liu, he met Xu Han, the then CEO of the Refining Division.

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After the two parties reached an agreement privately, Xu Han showed his "ultimate power" and directly increased the budget of the project, which was originally planned to be only 30 million yuan, to 200 million yuan, and even replaced the contractors who were unwilling to cooperate. In the end, the original company successfully won the bid with 172.57 million yuan.

The investigation found that the business owner surnamed Li had an agreement with Xu Han and others to overstate "illegal benefits" of up to 42 million yuan, which were to be shared equally among Li, Liu and Xu after the tender money was released.

After the incident, China National Petroleum Corporation terminated the contract in accordance with the law. In addition to pursuing another case to recover the 90.08 million yuan price paid, it also filed a civil lawsuit, requiring the original company to pay a punitive fine of 84 million yuan, twice the unfair benefits, and required the operator to dismantle the reinforced concrete chiller foundation that had been laid on the land of the Dalinpu plant in Kaohsiung.

During the trial in the Kaohsiung District Court, the original company argued that the criminal case had not yet been determined, and not all the bribes were received by Xu Han, so 42 million yuan should not be used as the calculation basis. Moreover, the company had already paid nearly 7 million yuan in project fees, and CNPC should pay or offset it.

The judge held that the business owner surnamed Li facilitated the establishment of the contract on the condition of paying huge commissions and unfair benefits. Even if the payment has not been fully delivered, the calculation should still be based on the 42 million yuan originally agreed upon, and the manufacturer used illegal means to facilitate the establishment of the contract, which is serious. It undermined the fairness of procurement, so the verdict was that China National Petroleum Corporation won the case in full. However, the original company not only had to pay a huge fine of 84 million yuan, but also had to completely remove more than 300 square meters of concrete foundations on site, refill the earthwork, and compact it back to its original state. It can appeal.