Ex-Jilin Grain chief arrested and charged with embezzlement

Liu Xianlu, the former chairman of Jilin Grain Group, has been arrested and charged with corruption and embezzlement, as authorities step up inspections of the nation's grain stockpile amid soaring food prices.

A source said Liu, 63, a delegate to the 10th National People's Congress, was charged with embezzling more than 100 million yuan (HK$113.85 million) and collecting several million yuan of bribes during his tenure at the country's major grain group.

Some high-level officials including one deputy provincial-level governor might be involved as well, according to the source.

'It is a serious case because it involves food, an essential part of people's sustenance,' the source said. 'What's worse, several major grain warehouses in the country were recently found to have been hollowed out by illegal trading.'

Jilin Grain is one of the mainland's biggest companies and the largest exporter in Jilin province, one of the major corn-producing areas. State-owned food companies control the procurement, storage, processing and distribution of grain.

Liu's arrest was made public during a half-year review by the Jilin prosecution office. The case had been put on the top of the list of major cases by Jilin People's Procuratorate, Caijing magazine reported.