Ex-Moutai Boss Faces Graft Allegations

The former head of mainland liquor firm Kweichow Moutai, the world's most valuable spirits company, has become the latest Communist Party figure to fall in President Xi Jinping's sweeping anti-corruption campaign.

Yuan Renguo, 62, was dismissed from public office and expelled from the party on corruption allegations, the Communist Party's anti-graft agency said on Wednesday.

Yuan "seriously violated Party discipline and national laws and regulations" by using his position in return for political gain and money, according to the Central Commission for Discipline Inspection (CCDI).

An investigation found Yuan engaged in "family-style corruption", facilitated illegal sales of Moutai for unscrupulous dealers, and failed to report related personal affairs.

"The nature (of the matter) is vile and should be seriously dealt with," said the statement, without specifying the amount of money he allegedly acquired through illegal actions or bribes.

Yuan was no longer the president of Kweichow Moutai Group as of May 2018 after serving in the position for more than six years and being part of the company for more than two decades.

Kweichow Moutai has seen its share price soar this year on good earnings and bullish market sentiment. But that followed several tough years for the industry.

An anti-corruption campaign launched in 2012 by Xi hit baijiu sales particularly hard as bottles of premium brands like Moutai had become a popular gift for schmoozing with or bribing Communist officials. (AFP)