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Two candidates competing for the post of village director in Laoyaotou, Shanxi Province turned the election into a bidding war by promising higher and higher pay-offs to residents in order to win votes, reports People's Daily.

In March, candidate Shi Huizhong promised the 1,300 villagers, whose annual incomes average less than 1,000 yuan (US$121), rewards of 150 yuan (US$18) in cash each if he was elected.

Wang Yufeng announced his candidacy several days later along with a vow to pay villagers 200 yuan (US$24) apiece if he won.

As their campaigns heated up in April, the amounts and counter-amounts pledged climbed from 600 (US$72.50) to 800(US$97) to 1,000 to 2,000 yuan (US$242).

Wang ultimately won the election, with more than half of the villagers casting their votes for him. He kept his word and handed out 2.3 million yuan (US$277,000) in return.

But no one seems to know where Wang amassed such a sizable election fund, the newspaper said.

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