Bribery Scandal Sounds Alarm to Nations Along New Silk Road
- Probe of oil giant CEFC hit deals in Eastern, Central Europe
- Buying spree stalled after arrest of former Hong Kong minister
Pedestrians are reflected in a window as they walk near Liberty Square in Tbilisi.
Photographer: Taylor Weidman/BloombergA chain of events that followed the arrest of former Hong Kong minister Patrick Ho a year ago in the U.S. has collapsed more than $10 billion of deals across Central and Eastern Europe, an embarrassment for China that could spur a change in the development of Chinese leader Xi Jinping’s grand plan for a New Silk Road.
Ho, whose trial is set to begin on Monday in a federal court in Manhattan, was charged under the Foreign Corrupt Practices Act with corruption and money laundering. Prosecutors say he wired $900,000 to African officials via New York as part of a bribery scheme to win advantages for Chinese oil company CEFC China Energy Co. Ho pleaded not guilty and has been denied bail five times.