China Gas announced on Jan 4 that two of the company's top executives were detained on charges of "functionary embezzlement" on Dec 17, 2010, the China Business News reported Wednesday.

The company previously announced that Liu Minghui, managing and executive director and Huang Yong, its executive president, were taken from their Shenzhen office on Dec 18 by two men claiming to represent the Shenzhen Municipal Public Security Bureau.

Upon preliminary questioning by the company's legal counsel, Liu and Huang were taken for investigation on suspected "embezzlement of the assets of an organization in which they have duties," which may be committed by any person who misappropriates assets of an organization by virtue of abusing his position held in that organization, according to Chinese law, the company said in the announcement.

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The Hong Kong-listed natural gas services operator said it has not filed any report or complaint with government authorities against Liu or Huang, and it is unable to contact the two directly.

The company said no indication of any irregularities involving recent material cash or fund movements have been brought to light after a preliminary internal assessment, and it has asked a "reputable international" accounting firm to assess its cash position and key internal controls procedures, according to its announcement.

China Gas said in a Dec 24 announcement that it appointed Leung Wing Cheong as an executive director of the company. Leung and Zhu Wei Wei, another executive director of the company, were named joint managing directors. It also set up an ad hoc management committee to oversee the group's operating activities.

Its shares have been suspended on the Hong Kong Stock Exchange since Dec 20, 2010, and will not resume until further notice.

China Gas closed at HK$3.39 before being suspended.