Ex-Bright Food chair goes on trial for embezzling $31m

The former chairman of Bright Food (Group) Co Ltd stood on trial Friday on charges of embezzling $31 million and accepting bribes, Xinhua News Agency reported over the weekend.

The allegations against Wang Zongnan relate to his time at State-owned companies Shanghai Friendship Group and Lianhua Supermarket Holdings Co Ltd.

Wang was the general manager at Shanghai Friendship Group and then at Lianhua Supermarket before becoming chairman at Bright Food in 2006 until his resignation for health reasons in 2013.

At a hearing in Shanghai, prosecutors accused Wang of embezzling 190 million yuan ($31 million) between 2000 and 2006 when he was chairman of Lianhua Supermarket.

The court also charged him with accepting 2.69 million yuan in bribes, the report added.

In 2003, Wang's parents bought two Shanghai villas for 2.1 million yuan, 2.7 million yuan less than the then-market price, from a company subsidiary their son did an unspecified favor for in 2000, Xinhua said, without providing further details.

A verdict is expected later, Xinhua added.

While chairman of Bright Food, Wang helped put one of China's biggest food corporations on the global stage with several acquisitions, including a deal for the majority of Britain's Weetabix which valued the cereal maker at $1.94 billion.

Under Wang, Bright Food also bought into Australia's Manassen Foods and New Zealand's Synlait Milk Ltd.

It has not been possible to reach Wang for comment.

Wang's trial is the latest in a government anti-corruption campaign that has embroiled several senior State officials including a former security chief, and that has recently been extended to executives at major State-owned companies.