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Key figure at airline arrested for corruption
By Zhan Lisheng (China Daily)
Updated: 2005-08-16 06:03

GUANGZHOU: China Southern Airlines Co Ltd has removed Peng Anfa from its board after he was arrested on suspicion of corruption.

Peng Anfa

China Southern, one of the country's top three airlines, said on Sunday night that all its board members agreed on the decision, which is subject to examination and approval at an upcoming stockholders' meeting.

Peng, 47, had been deputy general manager of China Southern Airlines Group, which holds the majority of shares in China Southern, since September 2002. He was primarily in charge of the group's finance department.

Peng is suspected of taking bribes, and was taken away by officials of the Central Disciplinary Commission of the Communist Party of China for interrogation in early July. He was formally arrested last week, according to a woman surnamed Huang at the company's political work department.

In June, Chen Liming, former director of the group's finance department, was also taken away by the commission for interrogation.

It is reported that China Southern Airlines Group entrusted the recently shut-down Shanghai-based Hantang Securities to carry out financial operations involving 1.10 billion yuan (US$135.64 million).

Hantang Securities was closed down for malpractice and is now in liquidation.

Following Peng's arrest, China Southern issued a notice saying that his alleged misconduct has nothing to do with the company and will not influence its operations.

Investors, however, are not so sure and the company's share price has dipped, closing yesterday at 2.76 yuan (34 cents) on the Shanghai Stock Exchange, down from an opening of 2.80 yuan (35 cents). In February, the price was 5.02 yuan (62 cents).

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