The provincial discipline watchdog in Shaanxi on Tuesday denied that a bureau director is being held under shuanggui — a disciplinary measure outside the regular legal system under which Party members are detained and interrogated.

But the official is being investigated, according to the Commission for Discipline Inspection of the Communist Party of China Shaanxi Committee.

Rumors online said Yang Dacai, the 55-year-old director of the Shaanxi provincial administration bureau for work safety, had been placed under shuanggui.

Yang made headlines last month when a photograph of him smiling was taken at the scene of an Aug 26 traffic accident that killed 36 people and injured three others. Netizens questioned Yang’s apparent jovial mood at the accident, which was on a highway in Yan’an, in northern Shaanxi.

Other photos soon surfaced online of Yang wearing at least five different expensive watches, raising corruption suspicions.

On Aug 29, Yang said on his micro blog that he was smiling in the accident photo because he believed other officials investigating the crash were nervous, and he wanted to put them at ease.

Yang also claimed he bought the watches with his salary over the past 10 years.

But after Yang’s response, netizens revealed more photos of Yang with another three to four expensive watches during different activities and meetings.

Sun Duofei, a luxury website founder who revealed information about Yang’s first five expensive watches, said that the prices of Yang’s watches were at least 15,000 yuan ($2,363) each, and the most expensive Rolex was worth about 280,000 yuan.

The provincial commission for discipline inspection said on Tuesday that it is paying great attention to Yang’s case and decided on Aug 30 to investigate the case. The commission said it will punish Yang if wrongdoing is discovered.