BEIJING (Reuters) - A former top executive at Volkswagen's (DE:VOWG_p) China joint venture with FAW Group Corp was sentenced to life in prison for accepting bribes, state media reported on Thursday, the latest development in corruption investigations involving FAW.
A corruption crackdown at state-owned companies like FAW Group is part of a larger campaign by China's President Xi Jinping to fight graft as well as reform state companies.
Shi Tao, former deputy general manager of FAW-Volkswagen Sales Co, was convicted for taking 33 million yuan ($5.3 million) in bribes, state-owned Shanghai Daily reported, citing a court in northeast China's Jilin province.
In exchange, Shi helped advertisers and car dealers obtain business orders from FAW-Volkswagen, the daily said.
He accepted bribes from 48 individuals and companies from 2006 and amassed 26.7 million yuan in property derived from unclear sources before being discovered in a 2013 audit.
Volkswagen declined immediate comment. A spokesman for the joint venture directed questions to Volkswagen.
Calls to relevant departments at the court went unanswered.
FAW Group owns 60 percent of the joint venture, while Volkswagen owns 40 percent. Volkswagen additionally has a joint venture with SAIC Motor Corp Ltd.
The Communist Party's Central Commision for Discipline Inspection said last month FAW Group's chairman was under investigation for "violating party discipline," a euphemism for corruption.
FAW Group, parent to Faw Car Co Ltd, also has joint ventures with Toyota Motor Corp and General Motors Co (NYSE:GM) in China.