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October 19, 2011

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Graft charges lead to tobacco boss downfall

A TOBACCO chief has been removed from his local government post and expelled from the Communist Party of China over corruption charges, officials said yesterday.

The case involving Chen Wenzhu, head of the local branch of the China Tobacco Corporation in the southern city of Shanwei, Guangdong Province, has revealed the huge profits in China's tobacco monopoly.

The provincial Party disciplinary watchdog ordered Chen to be expelled after probes confirmed graft allegations, Lin Jianhua, a spokesman for the Shanwei tobacco monopoly, told Xinhua news agency.

And Chen has been removed from his monopoly post, pending legal procedures.

Chen's case created a sensation after an informant posted the monopoly's lavish spending on the Internet, showing that 2 million yuan (US$314,960) a month was spent on dining and entertaining, in addition to 120,000 yuan a day for its canteen.

Initial official investigation said the monopoly's entertainment spending exceeded its budget.

Investigations found that Chen had given nine relatives and 36 others jobs in the monopoly without following official procedures.

He also forged IDs to bypass the ruling party's restrictions on cadres traveling outside Chinese mainland, according to investigations.




 

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