Majority of Corruption Cases in China Linked to Licensing: Official

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Last updated at: (Beijing Time) Saturday, August 30, 2003

Majority of Corruption Cases in China Linked to Licensing: Official

The majority of corruption cases in China are connected with issuing licenses or franchising rights, prompting China's top legislature to pass a law on administrative licensing.

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The majority of corruption cases in China are connected with issuing licenses or franchising rights, prompting China's top legislature to pass a law on administrative licensing.

Wang Yongqing, deputy director of the Legislative Affairs Office of the State Council, considered a lack of necessary restrictions or transparent operation were key factors leading to corruption.

"The law, laying a foundation for the standardized practice of granting franchises or permits to businesses and individuals, should hopefully prevent and eradicate corruption," said Wang at a press conference on Friday.

The law on administrative licensing, approved in the fourth session of the National People's Congress (NPC) Standing Committee, will take effect as of July 1, 2004 and is believed to play a vital role in the reform of China's administrative system.

Wang, who participated in the enactment of the law, said that government departments would be banned by law from setting up procedures for administrative licenses without authorization.

"If approval from different government bodies is required to get one thing done, for instance establishing an enterprise, investing in a state project or applying for a marriage certificate, these bodies must set up a special office issuing franchises collectively, so that applicants can avoid going to different places," Wang said.

He said the law also stipulates that government departments should reply to any franchise application within 20 days, in case any postponements are abused for seeking illicit profits.

In addition, the law allows applications to be submitted via correspondence or other indirect methods in a bid to reduce face-to-face contact between applicants and government officials, which should lessen the opportunities for improper fee collection.

"If the law is enforced strictly, the corruption that plagues China's administrative licensing sector can be greatly cut down," Wang noted.

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