Arrests in Shanghai bribery probe

At least two people linked to computer cabling equipment procurement have been arrested, said the BBC's Beijing correspondent Quentin Sommerville.

And the number of arrests could be much higher: a local newspaper said 22 staff from firms including McDonald's, Whirlpool and McKinsey's were detained.

Police declined to confirm whether there had been any arrests.

A source close to one of the firms said the two arrests referred to by Mr Sommerville were both junior staff, and they were both Chinese nationals.

McKinsey's said it had not been "accused of any bribery or corruption".

Neither McDonald's nor Whirlpool would comment on the local report.

Swiss engineering firm ABB, also named in Chinese press reports, said it would look into the claims and said it did not condone "improper business conduct".

Corruption drive

The investigation reflects the Shanghai authorities' role at the centre of a growing nationwide anti-corruption drive, according to Mr Sommerville.

Chen Liangyu, the city's top political chief, was sacked last September after being linked to a scandal involving the alleged misuse of government pension funds.

More than 17,500 officials were punished on corruption charges in the first eight months of 2006, the Chinese government has said.

Shanghai police were focusing their current investigation on seven companies, local state-owned newspapers reported.

Staff are alleged to have received bribes worth more than $500,000 from local computer firms in return for contracts.

None of the suspects have been named.

Corruption is widespread in many sections of the economy, particularly the financial system, but foreign businesses have rarely been linked with any malpractice.

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