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    Yunnan Tin chairman suspected of accepting bribes

    chinadaily.com.cn | Updated: 2013-10-08 20:29

    Lei Yi, former chairman of China's Yunnan Tin Co, the world's largest tin producer by output, was arrested recently for alleged "serious disciplinary violations", the Chinese State news website Xinhua.net reported on Tuesday.

    Local prosecuting authorities said the 51-year-old, who also chairs the company's State-owned parent Yunnan Tin Group, is suspected of being involved in accepting a bribe of 20 million yuan ($3.27 million) by abusing his power for others.

    Li Hongtao, chairman of Dianchi College of Yunnan University, was reportedly on the list of bribe givers.

    Analysts said it is likely Lei was taking bribes on a real estate project called Yuxi and the transfer of shares of Dianchi College held by Yunnan Tin Group, providing convenience for Li and others.

    Earlier reports said the company was trapped in a debt crisis and financial losses. In 2010, the company was required by the Ministry of Finance to rectify its financial irregularities, including tax evasion of $1.5 million in 2008.

    Yunnan Tin swung to a net loss of nearly 200 million yuan in the first quarter, with falling sale prices, dragged down by Europe's debt crisis and slowing domestic economy, weighing on its bottom line.

    Vice-Chairman Gao Wenxiang has taken over the responsibilities of the chairman and operations at the company remain normal, according to the company.

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