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Managers of mine found steeped in graft

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The investigation into last week's Guangdong mine accident that is believed to have killed 123 miners has revealed a web of corruption in the management of the operation.

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Zeng Yungao , the owner of the Daxing Colliery in Huanghuai town, Xingning city, bought a position on the local police force in 1997 to shore up his standing as one of the most powerful people in the town, the Beijing-backed Wen Wei Po reported yesterday.

Zeng had last year been named an outstanding entrepreneur in Meizhou , a higher-level city that oversees Xingning.

State media reports yesterday said Zeng had tried to spend 300 million yuan on a cover-up attempt after the mine flooded on Sunday last week.

His plot failed after the Central Commission for Discipline Inspection became involved in the investigation.

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Zeng surrendered to police last Wednesday after two days on the run.

A special investigation team, formed on the orders of Premier Wen Jiabao on Wednesday, uncovered the corruption while investigating the mine's stakeholders. Zeng is believed to have handed out 1.5 billion yuan worth of stakes as bribes.

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