The chairman of Guangzhou Automobile Group (2238), who had not been seen in public for two months, was arrested by the anti-corruption bureau

August 13, 2013 Leave a comment

Carmaker chairman arrested
Tuesday, August 13, 2013
The chairman of Guangzhou Automobile Group (2238), who had not been seen in public for two months, was arrested by the anti- corruption bureau, according to a mainland media report. “Zhang Fangyou was taken by [the authorities] in late June due to his close relationship with Liu Tienan,”Caijing Magazine reported yesterday. Liu is the former deputy director of the National Development and Reform Commission and head of the National Energy Administration. He was expelled from the Communist Party and removed from public office as he “took advantage of his position and both Liu and his family accepted huge amount of bribes,” Xinhua reported.Guangzhou Automobile manufactures Toyota, Honda and Fiat cars in the mainland.

“Chairman Zhang Fangyou asked for [months of] leave for personal reasons,” the company told the magazine.

Liu often took part in the carmaker’s special events and spent holidays in Guangzhou.

“Liu took presents and bonuses from the automaker and, as a result, returned `special’ favors to the company,” the report claimed.

It cited Guangzhou Automobile’s cooperation with Italy-based Fiat as an example of such a favor.

The joint venture proposed by the carmaker and Fiat was approved by NDRC in three months.

Shares of Guangzhou Automobile fell 2.72 percent to HK$7.51 yesterday. GRACE CAO

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