GUANGZHOU - The former general manager of Sinopec Guangdong was demoted in reaction to a scandal concerning extravagant liquor bills, the company said on Monday.

The Guangdong branch of the Sinopec Group, one of the State-owned petroleum giants in China, ordered the former general manager, named Lu Guangyu, to pay 131,100 yuan ($20,100) for the liquor he had consumed.

"The scandal has greatly destroyed Sinopec's image and resulted in harm to the company's business," Fu Chengyu, Sinopec chairman, said at a press conference on Monday. "Lu should be held directly responsible for the loss."

Previous online reports provoked public outrage by saying that Lu had spent 2.59 million yuan on three batches of expensive alcohol since 2010.

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Among the types of alcohol bought were Moutai, one of the most famous and expensive liquor brands in China, and imported wine.

Sources within the company contested reports that put the sum of Lu's alcohol expenditures at 2.59 million yuan. They said he had in fact spent 1.59 million yuan on booze.

After the alcohol bills were posted online this month, Sinopec twice sent an investigation team to its Guangdong branch.

"One thing has become clear: Lu bought such a large amount of alcohol for personal consumption," said He Minjun, deputy head of the team.

The company sources said Lu consumed a large amount of alcohol that could be bought for a fairly low price.

But Lu has not explained how he used 15 bottles of expensive imported wine.

Many Chinese netizens expressed disapproval of the punishment meted out to Lu, saying a demotion was too lenient for the former general manager.

"He should not be kept in the company," said a netizen named Bashoufengyun. "He used money from the public to satisfy his personal needs."