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September 17, 2010

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Hilton inquiry expands

SEVERAL senior executives with the state-run Chongqing radio and television group are being questioned in an expanding criminal investigation into the Hilton Chongqing hotel.

Chongqing Television Media Co Ltd's general manager, his associate, and financial and advertising managers in the group's commercial and advertising arm have been referred to prosecutors or put under double designation status - a special disciplinary procedure for Party officials, an inside source said.

According to the source, the municipality's vice publicity director, Liu Jianchun, was initially under investigation because of his alleged involvement with the Hilton.

Liu coughed up details involving a local real estate mogul surnamed Zeng. When Zeng confessed, the investigation expanded to advertising manager Qin Meng and his colleagues, the source said.

The Hilton Chongqing's major shareholder, Peng Zhiming, is suspected of connections with crime bosses.

A police raid in June smashed sex and drug activities at the Diamond Dynasty Club in the hotel's basement. Police arrested dozens of people, including Peng, who was the club's boss as well as an adviser to the local government and a deputy to the local People's Congress.

Police said Peng used the Hilton to shelter prostitutes and drug deals.




 

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