The tables have turned: the case of the Shuicheng District of Liupanshui City, Guizhou Province, arresting entrepreneurs who were seeking debt repayment from the district government has been reversed.
In February, China Business Herald reported that female entrepreneur Ma Yijia was undertaking 10 government projects for Shuicheng District, Guizhou, including relocation projects for poverty alleviation (central special poverty alleviation funds projects), kindergartens, and primary schools. The company estimated that the Shuicheng District government owed the company about 220 million yuan. A local government report acknowledged a debt of over 90 million yuan. The company had been seeking payment for the projects for eight years. The district government once proposed to resolve all debts with 12 million yuan, which Ma and her lawyers refused. Ma and the lawyers were then criminally detained by the local police on suspicion of provoking disturbances.
Shuicheng District then publicly announced that from 2016 to 2019, Guizhou Hongruiteng Construction Co., Ltd., Guizhou Yijiaxu Construction Engineering Co., Ltd., and Zhongheng Construction Group respectively undertook 10 projects in the Yeyuhai scenic area, with the actual person in charge of the projects being the female entrepreneur Ma, as reported by China Business Herald. Among the 10 projects, eight were adjudicated or audited by the court, with a total amount of 117.7552 million yuan, of which 115.389 million yuan has been paid. For the two unaudited projects, according to the engineering data provided by the project construction units, the amount is about 45.5719 million yuan, of which 31.317 million yuan has been paid. The total amount of the above 10 projects is about 163.3271 million yuan, with 146.706 million yuan paid so far, representing a payment ratio of 89.82%. In summary, the reports that “the Shuicheng District government owes the company about 220 million yuan” and that “the district wants to resolve all debts of over 200 million yuan with 12 million yuan” are untrue.
After the Shuicheng District government issued the announcement, China Business Herald actually deleted the article, which led many people to mistakenly believe that the media had really reported incorrectly.
However, the official information I obtained at the time showed that it was really not as the Shuicheng District official announcement stated.
For example, on January 12, 2021, the Industry and Information Technology Bureau of Shuicheng District reported to the Liupanshui City Debt Reduction Office that the unpaid project funds for the four projects undertaken by Ms. Ma in the Yeyuhai scenic area amounted to 113.1 million yuan, “reflecting the fact of arrears, and the amount of the debt is true.” For the other five projects undertaken by Ms. Ma’s related company, the total contract price was 129.6 million yuan, and 38.0289 million yuan of project funds had been paid, “reflecting the fact of arrears, and the amount of the debt is subject to the audited amount of the project.”
After reading these internal official materials at the time, I firmly believed that the current media environment is very bad, and I really didn’t believe that China Business Herald would dare to supervise the local government so harshly without evidence.
Therefore, in the article “The official who says the media report is untrue does not provide evidence, so I will!” (click the blue title to read the full text) written on February 27, I said the following: I feel like Shuicheng District is going to ruin the reputation of the “official announcement” again. If they keep doing this, who will believe the “official announcement” in the future?
The latest investigation results show that I was right, and the official announcement of Shuicheng District was playing a trick.
On June 6, the joint investigation team of Guizhou Province issued a situation report stating that among the 10 projects undertaken by Ma Moumou, there are 7 projects that have been confirmed by court judgment, arbitration ruling, or by agreement between both parties, with a payable amount of 118.7745 million yuan. The project owner had paid 88.211 million yuan before the case, and the remaining 30.5635 million yuan of arrears was paid on May 17, 2024. For the other 3 unfinished projects that were suspended, due to the chaotic project management, it is difficult to accurately calculate the amount of work completed in the short term. The project owner had paid 55.4934 million yuan of project funds before the case, and the relevant disputes are still under legal review in civil litigation.
The official announcement of Shuicheng District in February stated that “the total amount of the above 10 projects is about 163.3271 million yuan, with 146.706 million yuan paid so far, representing a payment ratio of 89.82%.” Let’s calculate: Shuicheng District only admits that the total arrears for the ten projects is 16.6211 million yuan. However, the joint investigation team of Guizhou Province said that among the 10 projects, the arrears for only 7 projects amounted to 30.5635 million yuan, which was paid on May 17, and there are still three projects that have not been calculated.
Did the “official announcement” of Shuicheng District lie? Did Shuicheng District really ruin the reputation of the “official announcement” again?
The situation report of the joint investigation team of Guizhou Province also stated that after review by the procuratorial organs in other places, the behaviors of the entrepreneurs and lawyers, such as tracking and secretly taking photos of others, were minor offenses and did not warrant prosecution. The arrested entrepreneurs and lawyers have now been released.
Fortunately, the “official announcement” of Guizhou Province saved the reputation of the “official announcement” that was once again ruined by Shuicheng District. But this matter reminds us that some local governments have made it a habit to tell lies with their eyes open, and we should not easily believe their “official announcements.” When you have evidence in hand, you must persist and not give up easily.
June 6, 2024
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