Anticorruption bidding

Luxury watches, fine liquor among most popular in auction of gifts received by officials

Amid an ongoing crackdown on corruption, officials in Wuhan, Central China’s Hubei Province, donated the gift cards, jewelry, collectibles, digital electronic products and alcohol they had received over the years to a special auction that netted 1.64 million yuan ($237,000).

Many businessmen used to give gifts as part of the Chinese festival tradition, trying to bribe civil servants or officials.

But after China’s government strengthened its efforts to tackle corruption, fewer and fewer people are using this method to build the so-called guanxi (connections and relationships).

The special auction took place in November. It was the fifth Wuhan has held since November 2016, organized by the Supervision Commission of Wuhan, its Bureau of Finance and auction companies.

In addition to Wuhan, other cities such as Shanghai and Shenzhen have also held such auctions.

Proceeds from the auction will flow to the local government.

Changes through years

Over 700 shopping cards were auctioned in Wuhan’s recent event, according to the auction house, Hubei Integrity Auction Co Ltd.

Popular alcohol on the block included Maotai and Wuliangye. Both are considered top-shelf alcohol in China. During the auction, six bottles of Maotai were bid on, selling for 24,000 yuan, Southern Weekly reported.

“These gifts reflect the preference of gifts that officials like to send and receive,” an official of the Wuhan Supervision Commission told Southern Weekly.

It is notable that cigarettes did not appear in the auction. They are a State monopoly product, and thus cannot be auctioned. Cigarettes donated to the auction by officials will be evaluated and recycled by the tobacco company.

The “gifts” used to bribe officials in China have undergone changes through the years.

At the very beginning, cash was put into a big envelop or hidden at the bottom of a bag, covered by other items on the top, and presented to officials or civil servants.

“Most of the bidders are professional. They know that the gifts sent to officials are of high quality. Some of the bidders came from Shanghai and other cities,” Xia Lijuan, manager of Hubei Integrity Auction, told the Global Times.

Xia added the numbers of luxury watches and gold bars appearing in the auction have both decreasing over the years. Over the past five auctions, the highest price went to an Omega watch, whose closing cost was 117,000 yuan.

Watches became unpopular among officials after a photo of a provincial Chinese official became viral on the internet in 2012. In the photo, he was inappropriately smiling at the scene of a road accident. More importantly, he was wearing a luxury watch which he could never afford on his public servant’s salary. The public shaming of this “Brother Wristwatch” made many officials in China aware of the items they wear.

Fake gifts

It is interesting that among the gifts sent to officials or civil servants, some were fake or used products, Xia said.

“If the bidder found the shopping card was used within five days, they can take the proof to us and we will refund them the money,” she said.

Once gifts were identified as fake, the company would set a low price so that the bidders could understand.

“But we wouldn’t say it is fake at the very beginning. The price spoke for itself,” Xia added.

For example, a pair of Aonika hisand-hers watches were priced at 50 yuan at first. The final deal reached 1,700 yuan.

The auction of gifts sent to officials should be advocated, according to Zhuang Deshui, deputy director of the Research Center for Government Integrity-Building at Peking University.

“Such auctions can first standardize the management of those gifts. Moreover, the gifts can play their role at the bidders’ home,” Zhuang told the Global Times.

He emphasized officials should always keep in mind that these gifts belong to the public and the institution, not themselves.