BEIJING, Jan 24 (Reuters) - Chinese Premier Wen Jiabao has ordered an investigation into allegations that a former head of China's food and drug watchdog took bribes, the official Xinhua news agency said on Wednesday.

Xinhua cited a report by the Ministry of Supervision as saying Zheng Xiaoyu, 57, had abused his position as head of the State Food and Drug Administration, a post he held from 1998 to 2005, to take bribes.

The State Council, or cabinet, had ordered a thorough probe and "stern penalties" after hearing the report on Wednesday, Xinhua said.

Xinhua did not say who was suspected of bribing Zheng, nor how much was involved. It said that the ruling Communist Party's Central Commission for Discipline Inspection had begun to investigate him in December.

"The corruption had a vile effect, as Zheng's offences threatened public health and tarnished the image of the Party and the government," Xinhua quoted the ministry's report as saying.

Fake or bad drugs have killed dozens in China in recent years and raised questions about drug safety. Public fears grew in 2004 when at least 13 babies died of malnutrition in Anhui province after being fed fake milk powder with no nutritional value.

China is in the middle of a crackdown on official corruption, which Communist Party officials admit is so widespread it could threaten the Party's mandate to rule.

Xinhua said on Tuesday that Qiu Xiaohua, former head of the National Bureau of Statistics, would face criminal charges over his alleged involvement in a social security fund scandal in Shanghai that has also led to the dismissal of Chen Liangyu as Shanghai Communist Party boss.

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