Zheng Xiaoyu, the former director of the State Food and Drug Administration
who was expelled from the Communist Party of China last month, has been accused
of taking bribes of more than five million yuan (US$647,107).
Zheng's case, previously investigated by the CPC Central Commission for
Discipline Inspection, has been transferred to the Supreme People's
Procuratorate. Zheng is locked up awaiting trial, according to a report in the
21st Century Business Herald.
The report said Zheng's relatives are also being investigated for assets
worth of millions of yuan which they could not account for.
All of the bribes, including cash and gifts, came from pharmaceutical
companies, said the report.
The report fingered a pharmaceutical company in south China's Hainan
Province, the Hainan Kongliyuan Group, which allegedly gave Zheng bribes and
paintings.
In return, the company acquired 277 approvals of medicines from the food and
drug administration, including more than 100 approvals in 2005. Most of the
medicines were antibiotics which could bring high profits for the company, the
report said.
The heads of the company have also been detained for investigation, said the
report.
Zheng first came under investigation by the CPC Central Commission for
Discipline Inspection in December last year.
Well-informed sources said that clues to Zheng's case were discovered during
an investigation of his subordinates.
Hao Heping, one of Zheng's former secretaries, was sentenced to 15 years in
prison for bribery in November last year. Cao Wenzhuang, another former
secretary of Zheng, came under investigation in January of last year.
Zheng was appointed director of the administration when it was created in
1998.
In 2002, China adopted national standards for approving medicines. All new
medicines had to be approved by the administration before they could be put on
the market.
Zheng promoted a certification system called Good Manufacturing Practice
(GMP), which was brought into disrepute by a series of health scares and
corruption scandals.
Zheng Shangjin, former head of the Drug Administration in east China's
Zhejiang Province, has been linked to Zheng Xiaoyu's case, according to the
report.
Hainan Kongliyuan Group reportedly gave Zheng Shangjin a car worth 580,000
yuan in 2005 in return for establishing contacts with high-ranking officials in
Beijing.
Zhou Hang, Zheng Shangjin's predecessor, also had close relations with Zheng
Xiaoyu. Zhou was sentenced to death with a two-year reprieve by a local court in
2002 for taking bribes.
The court found that Zhou took bribes totaling 2.67 million yuan and
US$170,700 between 1988 and 2001.
A retired administration official said Zhou persuaded Zhejiang's
pharmaceutical companies to "pay tribute" to Zheng Xiaoyu. "In SFDA's first
year, one-fifth of the country's approved new drugs were from companies in
Zhejiang."