Hubei Province reported 5 typical cases of "relying on enterprises to eat enterprises", where the vice president took bribes under the guise of "rolling profits" with an annual interest rate of 30%

The problem of relying on enterprises to eat enterprises is a hidden tumor within state-owned enterprises and an important manifestation of corruption among state-owned enterprise staff. The operation and investment activities of state-owned enterprises have a long chain, multiple levels, wide range, and large scale. The problem of "relying on enterprises to eat enterprises" is hidden, complex, and harmful, which not only worsens the political ecology of enterprises but also greatly damages their interests. In recent years, the Hubei Provincial Commission for Discipline Inspection and Supervision, as well as the disciplinary inspection and supervision institutions of various provincial enterprises, have seriously investigated and dealt with prominent problems such as related party transactions and interest transmission, and have deeply promoted the rectification of corruption in the field of state-owned enterprises. On August 21st, the Provincial Commission for Discipline Inspection and Supervision reported 5 typical cases of "relying on enterprises to eat enterprises".

1、 Chen Yiguo, former Party Secretary and Chairman of Hubei Changjiang Publishing and Media Group Co., Ltd. and Changjiang Publishing and Media Co., Ltd., manipulated the construction of enterprise engineering projects and accumulated wealth layer by layer. In 2019, Chen Yiguo took advantage of his position as the Party Secretary and Chairman of Hubei Yangtze River Publishing and Media Group Co., Ltd. to introduce a real estate company controlled by Peng to participate in the construction of a certain square project. Later, he instructed Lin, the general manager of a technology company, to borrow state-owned enterprise qualifications to win the bid for the project's general contractor. He then helped his cousin Deng borrow state-owned enterprise qualifications to undertake the pile foundation project, accepting bribes from Peng, Lin, and Deng, achieving the goal of accumulating wealth and "eating more fish with one fish". In addition, Chen Yiguo also has serious violations of discipline and law, such as accepting bribes from others. In April 2023, Chen Yiguo was expelled from the party and public office, and his illegal gains were confiscated. He was suspected of committing crimes and transferred to the procuratorial organs for legal review and prosecution.

2、 Liu Xingnian, former Deputy Secretary of the Party Committee and General Manager of Hubei United Development Investment Group Co., Ltd., was involved in the issue of conceding benefits and enriching his own pockets in the enterprise's land collection and storage. In 2012, Liu Xingnian took advantage of his position as a member of the Party Committee and General Manager of the former Hubei United Development Investment Group Co., Ltd. and colluded with private business owner Wang, both inside and outside, to transfer the profit space of a state-owned enterprise. He accepted a huge bribe from the private business owner and used a "shadow company" to deposit the money, evading organizational investigations. In addition, Liu Xingnian also has other serious violations of discipline and law. In December 2022, Liu Xingnian was expelled from the Party and public office, and his illegal gains were confiscated. He was suspected of committing a crime and was transferred to the procuratorial organs for examination and prosecution in accordance with the law.

3、 Wen Yaoqing, former member of the Party Committee and Vice President of Hubei Bank, used his powers such as bank credit and loan approval to facilitate the problem of damaging public interests and "borrowing interest". From 2007 to 2018, Wen Yaoqing took advantage of his positions as the President of Yichang Commercial Bank and Vice President of Hubei Bank to provide assistance to a construction company in Hubei in obtaining credit limits and loans, resulting in the risk of non-performing loans from state-owned assets. To express gratitude for Wen Yaoqing's assistance, the legal representative of the construction company, Li, has agreed with Wen Yaoqing to transfer benefits to him through "loan interest collection". From 2007 to 2018, after lending the principal to Li, Wen Yaoqing accepted a bribe from Li under the guise of paying interest at a rolling interest rate of 30% per year. In addition, Wen Yaoqing also has serious violations of discipline and law, such as accepting bribes from others. In April 2021, Wen Yaoqing was expelled from the Party and public office, and his disciplinary and illegal gains were confiscated. He was suspected of committing a crime and was transferred to the procuratorial organs for examination and prosecution in accordance with the law.

4、 Liu Xiancheng, former member of the Party Committee and Deputy General Manager of Huangmaling Holdings Group Co., Ltd., a subsidiary of Hubei Liantou Group, has been addressing issues related to the allocation of sales resources and rent-seeking. From 2010 to 2014, Liu Xiancheng took advantage of his position as Sales Manager at Huangmailing Company to help a company obtain the agency rights for a certain export product and cooperate in export business. During this period, the company cashed out "benefit fees" to Liu Xiancheng based on sales profits. From September 2011 to November 2016, Liu Xian provided assistance to distributor Bai in core sales processes such as product pricing and renewal of distribution contracts, and accepted bribes from Bai in the name of sales rebates and commissions. In addition, Liu Xiancheng also has serious violations of discipline and law, such as accepting bribes from others. In July 2023, Liu Xiancheng was expelled from the party and suspected of committing a crime, which was transferred to the procuratorial organs for legal review and prosecution.

5、 The problem of Tian Tian, the former accountant of a provincial consulting company under the Central South Architectural Design Institute, embezzles public funds and gnaws on state-owned assets through forging vouchers, fabricating expenditures, and other means. From October 2005 to February 2015, Tianye took advantage of his position as an accountant at Xinguang Company, a subsidiary of the provincial consulting company, and used methods such as forging relevant payment vouchers, payment application forms, and fabricating expenses. He illegally obtained company checks, bank U-shields, and passwords to withdraw huge amounts of funds from Xinguang Company's account 28 times in the name of paying relevant project engineering fees and related expenses. In September 2020, Tianye was sentenced to ten years in prison and fined RMB 500000. 11 relevant personnel responsible for dereliction of duty in the case, including the then responsible leaders, finance, and cashier, were also dealt with and punished accordingly.

The Provincial Commission for Discipline Inspection and Supervision emphasizes that party organizations at all levels of state-owned enterprises in the province should effectively compare and reflect, maintain clarity, learn from lessons, and draw lessons from others.

All levels of disciplinary inspection and supervision organs in the province should conscientiously implement the spirit of the 20th National Congress of the Communist Party of China, and in accordance with the deployment requirements of the Second Plenary Session of the 20th Central Commission for Discipline Inspection and the Second Plenary Session of the 12th Provincial Commission for Discipline Inspection, continuously improve their political stance, enhance their political consciousness, and thoroughly crack down on corruption in the field of state-owned enterprises. We must seriously investigate and deal with corruption issues such as rent-seeking, related party transactions, internal and external collusion and embezzlement of state-owned assets; Seize the key links of policy formulation, procedural decision-making, approval and supervision, use information technology and technological means to strengthen daily supervision, and lock power in the cage of the system; Strengthen the construction of a culture of corporate integrity, educate and guide cadres and workers to consciously resist the temptation of corruption from the depths of their hearts, gather the spirit of work and entrepreneurship, and promote high-quality development in the state-owned enterprise sector in the province with new achievements in promoting integrity, discipline and anti-corruption, providing strong disciplinary guarantees for accelerating the construction of a national leading area for building a new development pattern in our province.