China jails former Bright Food chief for 18 years for embezzling US$30 million
Shanghai court says Wang Zongnan, who helped firm buy majority stake in Weetabix, also took bribes
A Shanghai court sentenced Wang Zongnan, former chairman of state-owned Bright Food Group, to 18 years in jail for embezzlement and bribery, Xinhua reported on Tuesday.
While Wang led state-owned companies Shanghai Friendship Group and Lianhua Supermarket Holdings from 2001 to 2006, he embezzled more than 195 million yuan (US$30.84 million) to set up companies to invest in property for personal gain, Xinhua said in its report on the court proceedings. Wang illegally earned more than 1.2 million yuan, it also said.
The court also found Wang accepted more than 2.69 million yuan in bribes, Xinhua said in its report.
Wang, who was officially charged last August, was one of China’s most high-profile state executives. At Bright Food, Wang helped put the government-owned group on the global map with several acquisitions, including the 2012 deal for a majority stake in British cereal maker Weetabix.
Wang’s case is an example of the Chinese government’s crackdown on corruption.
In addition to sentencing Wang to 18 years in prison, the court also seized 1 million yuan in personal assets and ordered Wang to return more than 12 million yuan in illegal income.
Wang could not be reached for comment. Shanghai Bright, Shanghai Friendship, now Shanghai Bailian Group, and Lianhua Supermarket did not respond to telephone calls requesting comment.
Xinhua’s report on the court proceedings said Fosun Group, a subsidiary of Chinese investment company Fosun International, was named by the court. In 2003, Wang’s parents bought two villas in Shanghai developed by Fosun at below market prices, Xinhua’s report said.
The villas, which were bought for 2.08 million yuan in total, were sold for 14.8 million yuan several years later, Xinhua said.
The court also found Wang used his position to seek benefits for Fosun Group after Friendship Group set up a joint entity with Shanghai Fosun High Technology (Group), a Fosun subsidiary, Xinhua reported.
In an emailed statement on Tuesday, Fosun said it “never sought to inappropriately benefit from cooperation with Friendship Group and never delivered benefits to Wang Zongnan”.
Fosun also said it believed the sale price of the villas was appropriately discounted.
