A former top executive of a State-owned enterprise has been arrested over allegations he accepted money from people on the mainland to place bets in Macao special administrative region, one of the biggest gambling centers in the world.

ChinaCoal is the country's second largest coal producer by output.

Several unidentified officials from the company in Shanxi province told the magazine in the Jan 18 report that Zhang was found to have gambled excessively in a VIP room of a Macao casino last year.

In addition, Zhang had received a "large amount of money" from people on the mainland to place bets under their name, one of the officials said.

Zhang was put under the control of the Party's discipline inspection department as part of a corruption investigation as soon as he returned from Macao, the official said.

"It was not only because of his act of gambling in Macao," one of the officials said.

On Nov 18 last year, Zhang resigned from the post of vice president with the board of the China Coal Energy Co Ltd, a listed division of ChinaCoal.

He resigned due to "personal reasons", a statement from the company released the next day said.

The Economy and Nation Weekly, quoting unnamed sources, said Zhang received money for gambling purposes from the Shanxi Golden Ocean Energy Co Ltd.

Gao Jinghai, the Golden Ocean group's general manager, was also placed under investigation by the discipline inspection department.

In August last year, ChinaCoal bought a 60 percent stake in Golden Ocean for 3 billion yuan ($440 million).

Gao had been the company's former president before ChinaCoal's takeover.

He now controls a 40 percent share in the company.

During their careers, both Zhang and Gao stayed in Shuozhou of Shanxi province, near the Antaipu coalmine site.

Zhang was the general manager of a local State-owned company that owns the mine, while Gao worked at a banking office with direct relations with the mine, according to the magazine.

Zhang's arrest surprised his friends who could not believe he was addicted to gambling.

Zhang may have started gambling as a result of problems in his career, the magazine quoted an unnamed source as saying.

In December 2008, Zhang lost out on the chance to become the president of the board of China Coal Energy Co Ltd.

"(He) lost hope, too," the man said.