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The former president of a major pharmaceutical company has been arrested over alleged financial irregularities, local media reported yesterday.
Zhao Xinxian, the ex-leader of the Shenzhen-based 999 Group, has been held in custody for questioning by police for the past two weeks, according to Nanfang Daily.
A special task force of police procurators and relevant personnel have gone to the offices of 999 Pharmaceutical Group as part of their investigations, claimed the newspaper.
Zhao, 64, once an influential figure in China's pharmaceutical industry, was suspected to have misappropriated large sums of public funds when he was in office, said Nanfang Daily.
He was removed from his post and forced to take early retirement in May last year.
The company had debts of more than 9.8 billion yuan (US$1.22 billion) at the time of his departure.
Zhao was alleged to have illegally invested more than 500 million yuan (US$62 million) to construct a 'healthy city' in Shenzhen's Longgang District in 2003 without any approval from the board of the group.
The project is a complex where pharmacies and stores selling medical instruments are located.
He established Nanfang Pharmaceutical Factory in Shenzhen in 1985, which became 999 Group six years later. The company became listed on Shenzhen Stock Exchange in 2000.
Under Zhao's reign, 999 Group once reached assets valued at more than 20 billion yuan (US$2.5 billion). At one time he was Party secretary, chairman of the board and general manager of the group, which has controlled three listing companies and 400 subsidiaries.
Shenzhen Intermediate People's Procuratorate refused to comment about Zhao's case yesterday.
Xia Xiaolu, an official with Guangdong Provincial Bureau of Public Security, also refused to confirm whether local police had detained Zhao.
(China Daily December 14, 2005)
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