Liu Chunning, vice president of Alibaba Group, was detained by Shenzhen police in late June, the Beijing Times learned from sources with the insider knowledge of the situation.

There have been rumors that Liu was taken into custody by police on June 22 due to allegations by his former employer, Tencent Inc., that Liu participated in bribery during his time working at Tencent.

Alibaba Group has not responded to the news. A spokesman for Tencent last night told the press that the company found out its video production team was involved in serious corruption issues over the past two years during a routine audit last year. Tencent reported its findings to the police, and several Tencent employees, former employees and service provider employees were subsequently arrested.

The spokesman added that about five or six people were taken into custody and one individual was charged in a case involving 100,000 yuan (US$16,110). In response to questions about why Liu was brought back into the mess after having left Tencent two years ago, Tencent’s spokesman explained that the audit, reporting to the police, and the police investigation and evidence collection process all needed time to finish.

Liu joined Alibaba in August 2013. Before that, he worked for Tencent as a senior executive for nearly 10 years. His last post before leaving the company was as general manager of Tencent's online video department and head of digital entertainment. He has been arrested for corruption and commercial bribery related to Tencent's video copyright purchases while he managed the video division.

Tencent released a further statement on Friday, clarifying that the company did not report Liu to the police as an act of revenge. "That's not true," the statement reads. "We just found that there were problems with several employees and reported them to the police. The police's further investigation found that Liu was involved, too."

Tencent also said that the company has zero tolerance for corruption, stressing that Internet companies have enhanced their commitment to fighting corruption. "We are glad to see that, and we can create a healthier environment for the industry," the statement added.

Liu is currently vice president of Alibaba Group, executive director of Alibaba Pictures Group Ltd. and president of Alibaba Digital Entertainment Group.

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