Confession of a "saint of journalism"

Several years ago, Shen Hao wrote "Even if journalism died, a countless number of saints would survive," to express his devotion to the profession.

Shen, 43, later became publisher of the influential 21st Century Business Herald, and few people expected that on Sept. 25, Shen, and the publication's general manager Chen Dongyang, would be taken by the police.

Another six employees of the paper including editors, advertising managers and publishers were also investigated for extortion and bribery.

The newspaper company includes the 21st Century Business Herald, its website 21cbh.com and a finance weekly.

"The investigation focused on two points: using negative news coverage to force enterprises to pay 'cooperation fees' and demanding hefty 'protection fees' by promising not to publish negative reports," Shen said in an exclusive interview with Xinhua.

The company joined with some public relations firms in Shanghai and Shenzhen to collect and release negative reports about listed companies and those planning initial public offerings (IPO), according to witnesses and suspects' confessions. More than 200 companies were threatened, asked to sign cooperation agreements and paid advertising fees to avoid publication of the reports.

Director of the Shanghai New Culture Media Group Co., Ltd, surnamed Yu, said he was "very displeased" to cooperate with 21st Century.

"A public relations agent surnamed Zhang contacted me in February 2012 when the New Culture Media IPO was immanent. He showed me a draft agreement where an article or advertisement on 21cbh.com and in the newspaper was priced at hundreds of thousands of yuan," Yu said.

"Zhang told me that some IPOs failed or suffered fluctuation of share prices for not signing agreement," Yu said. "So we signed the agreement in fear of such results."

"We spent more than 1 million yuan on this 'cooperation'," Yu said.

A few refused to pay the "protection fees" and many suffered great losses.

Zhou Li, secretary to the chairman of the Nongfu Spring, a bottled water company, said the 21cbh.com released a negative report on Nongfu in March last year. The company clarified on the report without contacting the website "because the news was false and we did not do anything wrong."

In the following three months, the website published 19 pieces questioning Nongfu Spring's water resource and quality standard, which are estimated to have caused sales losses reaching several hundred million yuan.

Management of 21st Century set high quotas for staff. Those failing to reach the quota would not get their full annual salary.

Liu Dong, chief executive of 21cbh.com, said since 2011, the website had been ordered to bring in advertising revenue of around 80 to 90 million yuan every year. Those failing to hit the target could lose their jobs.

"I also ordered them to sign agreements with at least 70 percent of IPO companies each year," Shen said. "By doing this, I was encouraging or even forcing them to hook in partners with negative reports."

Some managers suggested that Shen should stop such action and avoid being investigated, but Shen told them to "not be afraid, continue and hit the target."

"I knew such extortion was a kind of economic crime," Shen said, but he could not stop.

"If each company gives you 300,000 yuan or 500,000 yuan, how much could that be from 100 IPO companies? The money just came so easily, and you needn't do anything," he said.

"It was like taking drugs. Once you get addicted, you cannot stop."

"I organized, supported, coordinated and participated in the extortion," he said. "I must shoulder a very big responsibility."

Shen had worked as an editor with the influential newspaper Southern Weekend after graduation from Peking University. He served as chief executive of 21st Century Media in 2008 and chief editor of the 21st Century Business Herald in 2010.

"As a journalist and media manager, I violated the basic requirements of professional integrity," Shen said.

"I felt being alienated." he said. "I felt that I broke my promise to journalism. I am very sorry."

"This is a tragedy," he said.