Former Maotai Sake sentenced to life imprisonment for receiving bribes

A Chinese court sentenced the former chairman of the liquor giant Guizhou Kayashu to life imprisonment for receiving a $ 17.5 million bribe.

Yuan Renguo, a board member of Kweichow Moutai, was convicted Thursday for receiving bribes between 1994 and 2018. statement From a court in Guizhou Province in southwestern China, home of Maotai.

Listed on Shanghai, Maotai is one of the largest companies in China by market capitalization. The high-end version of white liquor, a type of Chinese hard liquor, has become a status symbol and the drink of choice for the Chinese elite.

According to court records, the RMB accepted cash and property to secure work with the distillery and assist distributors in increasing their liquor bottle quotas.

Formerly arrested in 2019, he resigned from Maotai in 2018 after servicing the company for 18 years. His arrest led authorities to conduct a broader anti-corruption investigation into the then-management of the high-end distillery.

In late August, state media reported that China’s top commerce regulators had convened liquor makers to discuss industry market order and oversight, causing the sale of Mutai shares.

The former successor, who was the former regional transport chief, was banished in August. Inappropriate disclosure of sales forecasts. Within two years of being in the top post, he was replaced by another local government official in Guizhou. Guizhou owns a majority stake in the company.

Listed in Shanghai in 2020 and earlier this year, Moutai’s stake surpassed consumer goods giants such as Procter & Gamble and Nestré, temporarily rising to a market value of approximately $ 500 billion. However, stock prices have fallen about 35% from their February peak.

The overall profit of the stock has benefited investors, including many foreigners, but it has also benefited Guizhou Province, one of the poorest states in China.

Liquor giant State-owned parents In December, it agreed to transfer its 4% stake to another investment company owned by the state government. The stock was valued at about $ 16 billion.

There was a similar share transfer in the previous year. Investors were wary of such moves that did not seek shareholder approval.

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