Xinhua denied yesterday that its deputy director, Zheng Guoxiong, had offered people seats on the mainland legislature and consultative conference for a minimum of $50,000.
The denial, carried by the semi-official Hong Kong China News Agency, said somebody claiming to be Mr Zheng had telephoned people to see if they were interested in a seat on the National People's Congress (NPC), the Chinese People's Political Consultative Conference (CPPCC) or their local organs in Guangdong.
He also offered to help them apply for a work permit and vehicle pass under the working units of Xinhua or the State Council's Hong Kong and Macau Affairs Office.
In return, between $50,000 and $100,000 would have to be paid.
The report said interested parties were then asked to meet a man called Zeng Ping at a hotel, which was not identified in the report.
A Xinhua official was quoted as saying that the activities had re-emerged this year when NPC and CPPCC members at national and provincial levels were to be re-selected.