The Wall Street Journal-20080131-Macau Conviction Seen as Test of Antigraft Fight

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Macau Conviction Seen as Test of Antigraft Fight

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HONG KONG -- Macau's highest court convicted a former top-ranking official for taking bribes and money laundering in what could be a turning point in the booming Chinese gambling enclave's attempts to crack down on corruption.

Yesterday's verdict, which capped a one-month hearing, will put Ao Man-long, a 51-year-old former secretary for transportation and public works, behind bars for 27 years. It is one of the harshest penalties allowed under the laws of this special-administrative region of China. Mr. Ao will also be stripped of about US$32 million in personal assets, as well as properties in Macau, Hong Kong and London.

Mr. Ao was convicted on 40 counts of bribe taking and 13 counts of money laundering for pocketing tens of millions of dollars in kickbacks during his seven years in the appointed position. He was also convicted on four counts of abuse of power, but was found not guilty on 19 other charges. The verdict was seen as a barometer of Macau's ability to rein in graft, a major problem in a city that has seen investors pour huge sums into building glitzy casino resorts in recent years.

Macau has seen massive street protests in recent years over official corruption, as well as the government's perceived failure to spread wealth to all corners of society.

Mr. Ao became a symbol of those ills during his one-month trial, which saw nearly 100 witnesses take the stand.

Mr. Ao's public duties uniquely positioned him to benefit from the massive boom in Macau, the only place in China where casino gambling is legal. Prosecutors produced evidence showing Mr. Ao taking cuts of as much as 10% to ensure that contracts would go to particular developers on dozens of public-works projects.

Mr. Ao's lawyer, Nuno Simoes, who described the court's decision as "severe," said he would look into a possible appeal after meeting with his client.

Because Macau has no death penalty or life imprisonment, Mr. Ao's sentencing was seen as a strong show of resolve for the 16-year-old Commission Against Corruption.

Paul Chan, president of the New Macau Association, a civic group that has organized some of Macau's biggest protests against the government, expressed guarded satisfaction at yesterday's outcome. "This is by no means the end of corruption in Macau," he said.

Dane Chamorro, general manager of greater China for London-based consulting firm Control Risks Group, said the conviction set a good precedent for Macau. But he said the government has a long way to go in proving its ability to crack down on lower-profile corruption. "Unlike in Hong Kong over the past 30 years, Macau has not really made a reputation of itself as a transparent place," he said.