China: past FAW-Volkswagen executive to serve life term for corruption image

One of the former senior executives at Volkswagen’s joint venture with FAW Group Corp was sent to prison for life in China because he was corrupt.

According to state media reports on Thursday, the former top official was sentenced fro taking bribes, with the case being the latest one in ongoing corruption probes targeting FAW and numerous other officials across the country. State-owned firms such as FAW Group have been targeted by numerous probes in a huge crackdown on graft – with a massive campaign initiated by China’s President Xi Jinping to weigh down on corruption and also refresh state companies. The former FAW-Volkswagen official that has been sentenced to life in prison is Shi Tao, the ex-deputy general manager of FAW-Volkswagen Sales Co. He was charged and convicted for receiving payments totaling 33 million yuan ($5.3 million), according to a report from state-owned Shanghai Daily, citing the court in northeast China’s Jilin province. The newspaper said he accepted the bribes in exchange for facilitating dealer and advertiser access to business opportunities with FAW-Volkswagen.

The official received a total of 48 bribes from both individuals and companies from 2006 and accumulated wealth of 26.7 million yuan in property derived from unclear sources – his wrongdoings were found back in 2013 after an audit. “Globally, Volkswagen is strictly against any kind of illegal conduct, and attaches great importance that all applicable anti-corruption laws are adhered to,” commented the German automaker the case’s conclusion. VW has a 40 percent stake in the joint venture with the FAW Group and also does business through another partnership with SAIC Motor Corp Ltd.

Via Reuters