"After the media report we have set up two special teams to investigate the quality and security of the vehicles, and possible corruption activities," Liu Liyong, deputy mayor of Wuhan, said at a press conference.
"Those involved in corrupt activities, if found, will be punished according to the law," Liu said.
CCTV reported that taxi companies in Wuhan had to pay the local taxi management authority about 100,000 yuan ($15,915) for each car, while the same vehicle can be bought for about 62,000 yuan elsewhere.
The report said that although the Elysee-brand vehicles, made by Dongfeng Peugeot Citroen Automobile Co, lack antilock braking systems — known as ABS — and their brake discs are smaller than they should be, they were sold to taxi drivers for about 40,000 yuan above market prices.
The owner of a taxi company in Wuhan told CCTV that the types of cars that can be used by firms in the city are decided by local authorities.
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