Qiao Hong: Former Maotai executive sentenced to stay of Execution

Qiao Hong, former general manager of Guizhou Maotai Co. Ltd., producer of the renowned Chinese liquor, was sentenced to death on January 15 with a two-year reprieve for taking bribes totaling 13.23 million yuan (USD 1.94 million) and for illegally obtaining property worth 8.2 million yuan (USD 1.20 million). All his personal property has been confiscated, according to the local court. His brother Qiao Jianhua was also sentenced into the prison for 11 years.

Qiao, who previously served as deputy director of the Guizhou Provincial Bureau of Light Industry, was appointed one of the top three with Ji Keliang and Yuan Renguo in charge at Guizhou Maotai Co., Ltd. In 2000. Maotai, a spirit distilled from fermented sorghum, is appraised as the national drink of China. Sales of the liquor continue to follow the decades-long policy of planned distribution. Every year, 60 percent of Maotai is distributed according to government planning while the remaining 40 percent is sold on the basis of company leaders’ decisions, said Qiao in court. The scarcity of Maotai and Qiao’s distribution power has led to the official-turned-entrepreneur’s downfall. An investigation into Qiao by the disciplinary department began in April 2007.

It was known Qiao’s case began to be revealed during the 2002 Japan & Korea World Cup. At that time, the Maotai company organized the distributors and employees having made great contributions to Maotai’s development to go Korea to see the football matches. Their journey was organized by a travel agency in Shandong. The disciplinary department found that there were two contracts of payment between Maotai and this travel agency. One stated that Maotai paid the travel agency 8 million yuan (USD 1.17 million), but the travel agency only received 5 million yuan (USD 732.4 thousand) as stated by the other contract. The extra 3 million yuan (USD 439.4 thousand) was embezzled by Qiao Hong himself.