Caixin Online reported that Mr Shan Shanghua once gained notoriety for leading domestic steel mills in negotiations with international iron ore suppliers. The former secretary general of China Iron and Steel Association is again getting attention but this time for darker reasons.

The 67 year old Mr Shan is facing charges he embezzled state owned assets before he headed CISA.

Caixin learned that Mr Shan received a notice from Beijing No 2 Intermediate People’s Court after Spring Festival in February charging him embezzling from the China Metallurgical Industry Planning and Research Institution. Mr Shan was director of the MPI, a subsidiary of CISA from 2001 to 2009.

Mr Zhang Siyou current vice director of MPI, was also charged.

The prosecutor accused the 2 of stealing more than CNY 4 million from the MPI. Mr Shan is accused of profiting CNY 1.66 million.

Mr Shan headed CISA the government backed steel industry organization, from January 2008 until his retirement in 2011. During his tenure, he participated in major price talks between domestic steel companies and the world’s top iron ore suppliers and witnessed major changes in the global iron ore pricing system.

Opinions over Shan’s contribution to CISA and the country’s steel industry are divided. His supporters said that he was tough in negotiations but others said that he was unprofessional and didn’t understand the industry.

In a recent interview with Caixin, Mr Shan denied the prosecutors allegations. He said that “When I left the MPI in 2009 there was a compulsory audit and there was no problem found.”

However since his retirement, regulators have received reports from MPI employees alleging corruption. This triggered an investigation in 2010 by the disciplinary inspection office of the State owned Assets Supervision and Administration Commission.

Afterward Mr Shan and 10 other MPI employees were required to return a total of 4 million in bonuses. SASAC decided not to turn the case over to the courts.

However the next year prosecutors launched another investigation which also involved the State Anti corruption Bureau. Then in March 2012, Mr Shan was asked to post bail and await trial.

Prosecutors said that between January 2005 and October 2008 Mr Shan and Mr Zhang falsified financial records and distributed money to MPI employees.

But Mr Shan said that the money included some CNY 600,000 for employees overtime and CNY 1.2 million in wages paid to retired employees who continued to work for the MPI. It also included CNY 1.4 million paid as rewards to people who introduced projects to the MPI.