Date
21 July 2017
Zhu Fushou is the most senior executive to be drawn into a widening probe involving the country's second-biggest carmaker. Photo: Reuters
Zhu Fushou is the most senior executive to be drawn into a widening probe involving the country's second-biggest carmaker. Photo: Reuters

China graft watchdog probes senior Dongfeng executive

China is investigating the number two executive at Dongfeng Motor Corp. for suspected corruption, the country’s graft watchdog said.

Zhu Fushou, who is also the executive director at the firm’s Hong Kong-listed unit Dongfeng Motor Group Co. Ltd. (00489.HK), is being investigated for “suspected severe violation of discipline”, the Central Commission for Discipline Inspection (CCDI) said in a statement on its website.

“Discipline violations” generally refer to corruption

Zhu could not immediately be reached for comment. An official from Dongfeng Motor Corp.’s publicity department confirmed the investigation is taking place, but declined to give further details.

The CCDI move comes as China continues to implement a sweeping crackdown on deep-rooted graft that began when President Xi Jinping took over the Communist party’s leadership in late 2012, vowing to clean up government and business.

The watchdog’s statement did not give further details about the suspected violations. Unlisted parent Dongfeng Motor Corp. counts Dongfeng Motor Group Co. Ltd. and Dongfeng Automobile Co. Ltd. (600006.CN) as its listed subsidiaries.

Chinese authorities probed two Dongfeng-linked executives in December last year, part of a wider investigation into the firm.

Dongfeng, the country’s second-largest carmaker, is the domestic venture partner of France’s Peugeot SA and Japan’s Nissan Motor Co.

In September last year, Chinese prosecutors launched a criminal bribery investigation into a former senior executive at FAW Group Corp., a Chinese partner of Germany’s Volkswagen AG and Japan’s Toyota Motor Corp.

– Contact us at english@hkej.com

CG

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