Clear The Air News Tobacco Blog Rotating Header Image

February 28th, 2004:

Tobacco Executive Suspended Over Probe

SCMP A3 – February 28, 2004 – BENJAMIN WONG

Shanghai Industrial (Holdings) has confirmed one of its directors has been suspended following an ICAC probe into a multimillion-dollar cigarette smuggling case.

Without naming the director, the company said the man was an executive director of the company and executive deputy CEO.

He was suspended from all his duties and trading in the company’s shares were suspended at the company’s request.

A source said the director worked for the Nanyang Brothers Tobacco Company – a wholly owned subsidiary of Shanghai Industrial (Holdings) – which makes the Double Happiness brand.

The statement from Shanghai Industrial said it had formed a committee to “ensure normal operations at Nanyang Tobacco”.

The Independent Commission Against Corruption arrested a senior Nanyang executive after he allegedly took $11.4 million in bribes to facilitate several smuggling syndicates’ operations.

The investigators said with the man’s help, the six syndicates smuggled cigarettes worth $116 million into the mainland via Southeast Asia.

A further 19 people were also arrested in connection with the case.