Business / Economy

Former Guangzhou SOE chief on trial for graft

(Xinhua) Updated: 2014-08-22 10:14

GUANGZHOU - A former general manager of a State-owned enterprise in South China's Guangdong province stood trial on Thursday accused of corruption.

The Guangzhou Intermediate People's Court heard that Zhang Xinhua misappropriated nearly 400 million yuan ($65 million) between June 1998 and May 2013, when he was manager of the Baiyun Industrial and Agricultural Corporation. This is the biggest sum ever involved in a graft case in Guangzhou, one of China's financial and trade hubs.

Zhang, 52, allegedly embezzled property and land belonging to the Baiyun Corporation during his tenure by fabricating debts and underrating assets.

In 2006, he founded a private company named Xinyutian Property Co Ltd, so as to privatize State-owned assets worth 284 million yuan, according to the prosecutors.

He is also suspected of taking bribes of 97.8 million yuan and HK$2.38 million in bidding.

In court, Zhang didn't deny the charge, but questioned about the amount of 284 million yuan worth of pocketed State-owned assets.

Li Xuedong, spokesman for the Guangzhou City People's Procuratorate, told Xinhua that the case was extremely serious. "There are an uncommonly high number of people involved and the illegality took place over such a long time," he said.

The trial will continue on Friday.

Former Guangzhou SOE chief on trial for graft Former Guangzhou SOE chief on trial for graft
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