Mainland China: officials were suspected to help criminal evade debts more than $50 million
Heifei, China/Los Angeles, Calif., January 18, 2022 – Although the Communist Party of China(CPC) always boasts the rule of law, official corruption and local government lawlessness continue to emerge. According to mainllland media reports, in Fuyang, Anhui Province, where government officials colluded with criminals to help them avoid debts more than 314 million yuan (about $50 million). There is no way for victims to protect their rights, so they can only ask for the media to expose it. It is unknown whether the problem has been solved, and whether the corrupt officials have been investigated?
Now, let’s see what happened according to the mainland media.
“Yingzhou District Government of Fuyang City, Anhui Province, ignored the commitment of Fuyang Municipal Government, plan to forcibly levy the 0.66 acre of land held by Fuhe Company, and only repaid 20 to 30 percent of the total debt after the land was sold as a whole, cause strong dissatisfaction from creditors and they petitioning to the municipal government. Behind this, Xiaoquan Li, the deputy district head, was suspected of intervening in the judiciary and a number of public officials were involved behind the scenes to help Fuhe Company evade debts of 314 million yuan and let Runxing Company get the land.”
Recently, a number of creditors from Fuyang City told the media what Yingzhou District Government did, some creditors reported to the Crime Crackdown Supervision Group from Central CPC that Weiguo Ma suspected of crime, the supervision group arranged Fuyang City to investigate, but in vain at last; The creditors complained to Anhui Provincial Government’s complain platform online and it transferred to Fuyang City, while Yingzhou District did not handle properly; Due to Yingquan District Court illegal handling of his case, Creditor Fuqiang Li complained to the Supreme People’s Court, the Supreme People’s Court supervised the case, but Yingquan District Court did not process in accordance with the law!
Suffered from Weiguo Ma gang’s harm, some creditors separated, took poison, mental harmed, they want protect their rights legally but in vain, petition fruitless, watching the district government press on helplessly. Why did the district government refuse to fulfill Fuyang Municipal Government’s commitment? The local judiciary seems to be in sync with the district government, what secret is hidden behind this? Let’s take a look at the evidences provided by creditors.
Weiguo Ma imported investors, the deputy president of Yingzhou District Court and the brother-in-law of a standing committee of Fuyang Municipal Commission for Discipline Inspection joined the group
In 2011, Weiguo Ma, an official of Yingzhou District Procuratorate, bought all the shareholding of Fuhe Economic and Trade Co., Ltd. It violated the discipline of CPC and the law of China. Ma later reached an agreement with the local government to get more land. The local government entrusted Ma’s company to help with its city construction to demolish and resettle the local households because the demolition of old houses involved high compensation fees and the government was unable to afford it. As a reward, Ma’s company can get the “lawful” right to redevelop this 3.5 acres of land after the demolition. According to this agreement, the development and resettle rights of the land are thus handed over to Ma’s Fuhe Company.
After 2012, Ma imported several investors join his group to invested together. These investors include Suping Liu, the deputy president of Yingzhou District Court(retired), Hu Zhang, the brother-in-law of Xudong Liu, who is a member of the Standing Committee of the Fuyang Municipal Commission for Discipline Inspection now. After Weiguo Ma completed the demolition of 2.8 acres of land, the government should have transferred the land development rights to Fuhe Company as promised, but they continued to let Weiguo Ma into further demolishing and resettling the local households for the government. The government officials promised that the more land Ma had demolished, the more land development rights he can get. Due to the continuous expansion of areas to be demolished, Weiguo Ma was unable to bear the high demolition costs.
In 2018, In order to ensure his own rights and interests, regardless of the interests of many other creditors and investors, Ma joined forces with Shenghua Huang, a construction businessman from Jiangsu Province, to collude with the Yingzhou District Government’s Expropriation Office, Ma transferred 60% shareholding of Fuhe Company to Huang freely, and Huang established Anhui Runxing Real Estate Development Co., Ltd immediately. Then Runxing Company signed a contract with the Yingzhou District Government’s Expropriation Office, it replaced Fuhe Company to develop the land. If this trick practiced, Fuhe Company can evade 314 million yuan, which was the investment funds of many common creditors. Because Ma transferred 60% shareholding freely, in January 2021, with the joint efforts of the creditors and judicial authorities, Weiguo Ma was put into a sentence for three years in prison in the final judgment.
Deputy district head was suspected of interference in the judiciary, the Crime Crackdown Supervision Group from central CPC arranged Fuyang City to investigated, but in vain at last
After Runxing Company intervened in the land, the 0.66 acre of land was sealed up by many courts, and the district government planned to sell the land as a whole, so it did not mind intervening in the judicial auction. By Fuqiang Li’s apply, Yingquan District Court launched judicial auction on taobao.com, in order to stop the auction, the district government let the Intermediate Court stop the auction, then the Intermediate Court ordered Yingquan District Court suspend the auction in October 2018. After refusing to accept the suspension of the auction, Fuqiang Li filed a petition to the Supreme People’s Court. Yingquan District Court resumed the auction in March 2019 under the supervision of the Supreme People’s Court.
In April 2019, the 14th team of Crime Crackdown Supervision Group from central CPC arrived in Anhui province, creditor Sulan Li and ChuanKun Xie reported to the team about Weiguo Ma gang’s crime clues and the protective umbrella, after received the material, the team arranged Fuyang City to investigate, but it didn’t work out at last.
As for the investigation team involved in crime, it was members of Yingzhou Public Security Sub-bureau, assigned by Fuyang crime crackdown office. During the investigation, at first, the informer stated that it was obviously inappropriate to investigate himself, Yingzhou Sub-bureau should withdraw from the investigation. Since then, in the investigation, the informer has been repeatedly required Yingzhou Sub-bureau should not investigate himself, and the officers in charge report to the leaders of the bureau, but the leaders did not agree to withdraw until the end, although the evidence is enough, the criminals was not identified.
Sufficient evidence was also found for the kidnapping, and one of the participants had already been sentenced for criminal involvement, which was sufficient to form a complete chain of evidence based on his confession and the facts of the investigation. Investigators had told the informer that the case was related to forced trading, not kidnapping, but nothing was pursued. Later Chuankun Xie and the victim Jingang Wang repeatedly addressed the Public Security Department of Anhui Province and Anhui Judicial Education Team, they transferred to Yingzhou Public Security Sub-bureau, ultimately fruitless.
The investigation of public officials was undertaken by the Discipline inspection Commission of Funan County, Fuyang City. During the investigation, the informer also requested it should be handled by the officers out of Fuyang, but was not approved. After the investigation, it said that no one break the law. As for the public officials suspected of participating in enterprise operation and seeking huge profits, the source of Suping Liu’s huge funds was not informed. It was explained that Jie Lv, a judge of the Intermediate Court, received 250,000 yuan from Fuhe Company on behalf of her mother Suping Liu. For Xudong Liu and Hu Zhang ‘s source of funds in 2014, the reply mentioned nothing. For Yingzhou District Government and Xiaoquan Li intervention in the judiciary, the investigation team went to Yingquan District Court and got enough evidence, but there was no news in the end.
The Supreme Court Supervised in vain. Will justice be late or absent?
When Yingquan District Court auctioned the land of Fuhe Company on Taobao.com, the first auction was completed on April 27, 2019. The buyer did not pay, and the deposit of 2.5 million yuan was not refunded. On June 11, 2019, the second auction was completed and Fuqiang Li bought it. Because Li failed to pay all the money, the court confirmed on August 30, 2019 that the transaction was not completed, and 2.9 million yuan out of the 6 million yuan paid was converted to deposit and not returned.
Fuqiang Li believed that according to the judicial interpretation of the Supreme People’s Court on Some Issues of The People’s Court’s Online Judicial Auction,article 24:”If the buyer regrets the auction after the auction is completed, the deposit paid shall not be refunded, and shall be used in turn to pay for the loss of expenses incurred in the auction, to make up for the difference between the price of the new auction price and the price of the last auction, and to offset the debts of the person subject to execution in this case and the debts of the person subject to execution related to the auction property.”
In this case, the deposit is not refundable, and since there is no cost loss in the online auction, and there is no price difference because there is no auction organized after the second auction, the debts of the person subject to execution in this case should be offset. Since the amount of Li’s debt is much larger than the amount, the 5.4 million yuan should be paid to him in full to offset the debts. As the second auction was applied for by Li, and occurred during the execution of the case, the court should pay the money to Li, but it didn’t.
Li believed that the 5.4 million yuan deposit is not Fuhe Company’s property, Yingquan District Court should pay him in accordance with the judicial interpretation to offset the debt. After failing to asked the leaders of the court for many times, Li filed a petition to the Supreme People’s Court. After examination, the Supreme People’s Court considered his petition legitimate and decided to supervise the case. However, during the supervision period, Yingquan District Court did not deal with it according to judicial interpretation, but transferred the money to the bankruptcy administrator according to it’s request, and replied to the Supreme Court to end the supervision. Li thought that Yingquan District Court and the administrator knew that the money did not belong to the bankruptcy property, but transferred it to the administrator, both parties really knew it was illegal!
The supervision of the Supreme Court was useless, Li was desperate. He complained to the director of the High Court of Anhui Province, the director appointed a judge guided him applicated a execution objection. Yingquan District Court said that the $5.4 million is not bankruptcy property of Fuhe Company, but did not said is it legal to have paid to the bankruptcy administrator, and didn’t support to pay to Li. Li refused to accept, and proposed reconsideration to The Fuyang Intermediate People’s Court. On September 26, 2021, the Intermediate People’s Court issued an executive ruling, believing that the Yingquan District Court’s executive ruling did not find out the relevant facts, and decided to cancel the ruling of the District Court and send it back to Yingquan District Court for re-examination. The case has been returned to Yingquan District Court, it is unknow how the court will deal with it in the future. It’s rare enough that court and law firm break the law together, will justice be late or absent?
No way to protect their rights, creditors wrote for help to higher officials,
but have no effect
After Weiguo Ma was investigated for criminal responsibility, Fuhe Company turned into the bankruptcy process. According to the statistics of the administrator, the total debt is as high as 314 million yuan. In July 2020, Yingdong District Court appointed Anhui Lanbang Law Firm as the bankruptcy administrator. The creditors asked the administrator to file an administrative lawsuit against the Municipal Government, which was rejected by the administrator. In desperation, the lawyer of the creditor asked the deputy secretary general of the Municipal Government, who made it clear that: according to the local policy, Yingzhou District government should in charge of it and to deal with it in accordance with the law. If it needs the coordination of the Municipal Government, it can report to the Municipal Government for help.
In December 2020, the lawyer of the creditors sent a Legal Opinion to Junjie Zhang, the district governor, arguing that the legal effect of the administrative commitment should be recognized in order to protect the legal rights of the administrative counterpart and their reliance interest. The opinion also said that the contract with Runxing Company should be invalid. If the district government still insists on it, both parties are suspected of assisting Weiguo Ma’s crime. However, the district government has not stated the validity of the contract.
After the creditors complained to the Anhui Provincial Government complain platform online, the platform demanded it to Fuyang City. Later the district government replied: “The creditors should make a request to the Fuyang Natural Resources and Planning Bureau of Fuyang City or continue to claim rights through litigation.” The creditors are dissatisfied with this reply and think that the district government is bucking and not acting on the matters assigned by the superior.
The direct reason for this case is that the district government and Runxing Company help Weiguo Ma evade debts. If the district government leaders did not know the truth before Weiguo Ma was investigated for criminal responsibility, but after Ma has been sentenced to three years in prison, the leaders are still not show their attitude about the effectiveness of the contract with Runxing Company, the reason is suspecting!
In May 2021, an even more confused thing appeared: Xiaoquan Li, the deputy head of the district, even though his responsibilities had already been changed, was appointed to handle this case again, which undoubtedly cast a shadow on the mind of creditors: they reported to the Central Crime Crackdown Supervision Group in vain, and he was promoted to the standing committee of the District Committee of CPC this year. Creditors wonder if the district’s main leaders have a stake in it too? Xiaoquan Li said that the land of Fuhe Company should be sold as a whole, if the creditors do not agree, the land can be cut out of the plan and abandoned.
On May 22, Wenfeng subdistrict office of Yingzhou District government hold a meeting with the bankruptcy administrator, it want to form a preliminary plan for the land. It want to sell the land, return part of the demolition fund invested by Fuhe, which is about 20% of the total debt of more than 314 million yuan. After the meeting, the district government negotiated twice with the administrator, led by director of Wenfeng subdistrict office.
The administrator told the creditors that the Yingdong District Court required it to close the case as soon as possible. If the creditors do not apply for restructuring, the administrator will request the court to declare Fuhe bankrupt. However, the administrator did not answer the creditors’ questions about who has the right to claim to the Municipal Government to fulfill its commitments after Fuhe company bankruptcy. After Fuhe company is declared bankrupt, the Municipal Government’s commitments no need to fulfil, the creditors worried and asked the lawyer write to district party committee secretary Xianglin Duan and district head Feng Liu, creditors wrote to Fuyang City Governor Yujie Liu and Anhui Provincial Governer Qingxian Wang for help, but got no answer.
In the information provided by the creditors, the reporter saw the commitments of Fuyang Municipal Government and many government files, indicating that it was indeed Fuhe Company handled the project. However, why the Yingzhou District Government did not implement the commitments of the municipal government? Why only return part of the demolition fee despite the fact that these files exist? Is it to continue to assist Runxing company to obtain the project, or to rob the profit with the people? Xiaoquan Li is suspected of interfering in the judicial, but has not been investigated, and now rehandling of the matter. Is this really a ” pig-butchering scam “? For this, the creditors are not sure.
