A two-year investigation into a former People's Liberation Army (PLA) deputy logistics chief has found that he personally benefited from military real estate deals and building projects, sources close to the inquiry say.
During the tenure of Gu Junshang, deputy head of the PLA General Logistics Department who held the rank of lieutenant general, the PLA started large-scale building and renovation of soldier accommodation.
The official Xinhua News Agency said that from 2003 to 2007, the Central Military Commission spent 2.5 billion yuan ($410 million) to build apartments for retired military officials. Also, from 2005 to 2007, the logistics department spent another 500 million to renovate military accommodations.
Sources close to the investigation into Gu say he profited from the projects and land deals. The inquiry found Gu owns dozens of apartments in downtown Beijing. Gu told investigators the apartments were supposed to be gifts for other people, several source said.
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Gu received a 6 percent "rebate" from a 2 billion yuan sale of a plot of land owned by the military in Shanghai, a source close to the investigation says. Gu and his relatives also profited from development projects in his hometown of Puyang, in the central province of Henan.
Gu Xianjun, Gu's brother, was arrested in August for bribery. Zhang Tao, Gu Xianjun's brother-in-law, has turned himself in to police.
Residents of Dongbaicang village in Puyang say that investigators searched a mansion Gu owns there on January 12, 2013. Four truckloads of possessions were seized.
The search was conducted by local members of the People's Armed Police and members of the military prosecutor's office. Seized items included a gold boat, a gold wash basin and a gold statue of Mao Zedong. Crates of expensive liquor were confiscated as well.
Gu's home, which was vacant for years, was next to a house owned by his brother. The homes shared a 30-meter-long basement filled with expensive liquor and other items.
The police also searched the brother's home and that of the village's Communist Party boss.
No official statement about the investigation into Gu has been released.
Gu's name was removed from an official list maintained by the PLA General Logistics Department in February 2012. Later, all news related to Gu disappeared from the Ministry of National Defense's website.
The military's anti-corruption officials and prosecutors arrived in Puyang in February 2012, sources close to the situation said. One month later, officials from the party's anti-corruption watchdog and the country's top prosecutor's office joined the investigation.
Gu stepped down from his post in May 2012.
Colonel Gong Fangbin, a professor at the PLA National Defense University, the military's top institution for higher learning, told state media on August 1 that Gu was involved in corruption cases.
Public documents show that Gu was born in 1956 in Dongbaicang village. However, people close to his family said he was born in 1954.
Gu was recruited by the military in 1971 after he graduated from junior high school. He later worked in the air force in the northeastern province of Jilin.
In 1985, Gu was transferred to Puyang, where he became involved in the business operations of the local military department. A decade later he was promoted to head the military's logistics department for the Puyang area.
Gu was promoted to the Jinan Military Region in 1994 and was again in charge of logistics. The military region is one of seven in the country and covers a central and eastern portion of China.
He was named the deputy head of the infrastructure department of the PLA General Logistics Department in Beijing in July 2001. Two years later he was promoted to major general.
Gu became the deputy chief of the PLA General Logistics Department in 2009, and in 2011 he was promoted to lieutenant general.