Former China Unicom Executive Zong Xinhua Avoids Repaying 2.5 Million Yuan Debt After Prison Release

Deep News
03/16

Former China Unicom executive Zong Xinhua, who previously served as general manager of the Information and E-commerce Department, has been involved in further disclosed case details. After his release from prison, a friend pursued repayment of a debt exceeding 2.5 million yuan, which Zong ultimately did not repay. Among senior executives at the deputy department level who faced disciplinary issues within telecom operators, Zong received a relatively light sentence. He was investigated and removed from his position in 2014, sentenced to five years and six months for accepting bribes, and was released from prison by July 2020. Now 58 years old, Zong is presumably living a more leisurely life, whereas most of his peers are likely still employed.

The debt originated from a property purchase. After his release, Zong was involved in multiple court disputes with a friend over a loan. According to court documents disclosed in 2023, a friend named Wang sought a court ruling ordering Zong to repay 2.5 million yuan in principal plus interest. The debt began in 2012 when Zong borrowed 3 million yuan from Wang De for property purchase, issuing an IOU and promising annual repayments of 1 million yuan to clear the debt within three years. However, Zong only repaid 500,000 yuan in 2013 and made no further payments.

At that time, Zong held prominent positions. Between 2012 and 2014, he served successively as General Manager of China Unicom's Electronic Channel Department, Deputy General Manager of the Electronic Channel Center, General Manager of the Electronic Channel Center, and General Manager of the Information and E-commerce Department. Despite appearing financially capable of repayment during this period, Zong did not honor the agreement, and Wang seemingly did not press the issue. Subsequently, Zong was imprisoned in 2015. It was only after his release in 2020 that Wang repeatedly demanded repayment, but Zong refused.

The dispute first went to court in 2021, but Wang failed to appear for the proceedings, resulting in the case being treated as a withdrawal. The final ruling, issued in 2023, determined that Wang's claim was not supported. During the trial, Zong argued that Wang had not asserted his rights within the statutory period, noting that Wang's first lawsuit in 2021 was filed more than six years after the repayment deadline specified in the IOU, meaning the statute of limitations had expired. The relevant authorities accepted Zong's argument and rejected Wang's claim for repayment of the principal and interest.

Wang had multiple opportunities to recover the debt. He could have demanded repayment after the IOU's specified deadline in 2015, or pursued legal means after Zong's imprisonment. However, he took no action until the statute of limitations had expired, raising questions about whether this was due to negligence or intentional delay.

An investigation revealed that during his tenure, Zong accepted bribes totaling over 1.8 million yuan, $15,000 USD, and a Chopard watch valued at 129,000 yuan, most of which was confiscated. It remains unclear whether Zong had the financial capacity to repay the 2.5 million yuan debt after his release.

Zong's bribery conviction included instances where he solicited funds under the guise of loans. The judgment mentioned that Zong asked a company chairman named Liu to "lend" him 500,000 yuan, which was essentially a demand for money, using his relative's property purchase as a pretext, complete with an IOU. Testimony from relevant witnesses indicated that Zong repeatedly sought benefits from multiple companies under the pretense of borrowing money. This context casts doubt on the nature of the loan dispute between Zong and his friend Wang. However, the court documents did not disclose Wang's specific job title or identity, leaving it unclear whether any improper benefits were involved between the two.

Regardless, Zong has faced consequences for his misconduct. Although his departure from the corporate world was forced, he now has the opportunity to enjoy his life.

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