Interview with Lai Xiaomin in custody
Six months after being investigated, Lai Xiaomin, the former party secretary and chairman of China Huarong Asset Management Co., Ltd. (hereinafter referred to as Huarong), was finally expelled from the party and public office.At noon on October 15th, the Central Commission for Discipline Inspection and the National Supervisory Committee announced the results of the handling of Lai Xiaomin. The words were unprecedentedly severe, saying that Lai Xiaomin acted arbitrarily, corrupt, corrupt, and lived a luxurious life.discipline.There are also three special cases--the public's reaction is particularly strong, the corruption problem is particularly serious, and its nature is particularly bad.
According to a Caixin reporter's investigation, the case of 56-year-old Lai Xiaomin is indeed jaw-dropping, and the details that keep coming out have refreshed the outside world's imagination of corruption time and time again.
Previously, according to an exclusive report by Caixin, after the case of Lai Xiaomin, investigators found cash equivalent to 270 million yuan in local and foreign currencies in his residence.This detail immediately caused an uproar at home and abroad.According to people familiar with the matter, Lai Xiaomin has privately expressed his preference for cash.
A person familiar with the case told Caixin that the 270 million yuan was the total cash value of RMB and foreign currencies converted into RMB that investigators seized from several residences of Lai Xiaomin in Beijing.One of the residences is located near the Olympic Village on the North Fifth Ring Road. Lai Xiaomin used the ID cards of five people to cover up the fact that he is the actual owner of the property.
But the 270 million cash is just the tip of the iceberg of Lai Xiaomin's corruption case.According to Caixin reporter's exclusive knowledge, Lai Xiaomin's mother still has 300 million yuan in deposits in her account, which is the result of people inside and outside Huarong taking Lai Xiaomin as a filial son and paying filial piety in various ways during the holidays.Since his mother was over ninety years old, she was exempted from legal responsibility this time.Some time ago, Huarong internally requested self-examination, and several top leaders of the subsidiaries confessed the details of sending huge amounts of cash to Lai Xiaomin's mother in their confessions.
This time, the Central Commission for Discipline Inspection and the National Supervisory Commission used three words: appointing people only for power, appointing people only for profit, and appointing people only for circles to define Lai Xiaomin's problems in the selection and appointment of cadres, saying that it seriously pollutes the political ecology of enterprises.Among them, it is an open secret inside Huarong that Lai Xiaomin sells his officials for profit in terms of appointing others for profit.Huarong insiders told Caixin reporters that during Lai Xiaomin's era, Huarong's internal price was clearly marked: 300,000 yuan for entering Huarong, 500,000 yuan for a part-time official, and 1 million yuan for the leader of a subsidiary.When you become the leader of a subsidiary company, you become the God of Wealth.
After Lai Xiaomin was sacked, the Ministry of Finance and regulatory authorities dispatched new executives to Huarong immediately.After the new team came to power, Huarong has carried out a series of personnel adjustments in succession, with the aim of bringing order out of chaos, cleaning up discipline, and eradicating Lai Xiaomin's poison under the premise of clarifying responsibilities. Recently, related actions are accelerating.■ The first case of financial corruption in New China, behind the official notification of Lai Xiaomin's case | Huarong case investigation 11
Six months after being investigated, Lai Xiaomin, the former party secretary and chairman of China Huarong Asset Management Co., Ltd. (hereinafter referred to as Huarong), was finally expelled from the party and public office.At noon on October 15th, the Central Commission for Discipline Inspection and the National Supervisory Committee announced the results of the treatment of Lai Xiaomin. The words were unprecedentedly severe, saying that Lai Xiaomin acted arbitrarily, corrupt, morally corrupt, and lived a luxurious life. He was willing to be "hunted" and seriously violated the party's discipline..
The National Commission for Discipline Inspection of the Central Commission for Discipline Inspection listed many of his problems in detail - violating the central financial work principles and policies, violating the spirit of the eight central regulations, and almost violating the political discipline, organizational discipline, integrity discipline, and mass discipline in the disciplinary regulations of the Communist Party of China, work discipline, life discipline and all six major disciplines.
Lai Xiaomin, 56 years old this year, joined Huarong in January 2009 after 18 years of supervision. He was the general manager first and then the chairman.However, it has dissimilated into a tool with serious family management and arbitrary transfer of benefits to individuals, which eventually caused a lot of holes.On April 17, 2018, Lai Xiaomin was officially investigated by the organization.
A person close to the decision-making level told the Caixin reporter that except for a few people who fled, most of the people involved in the case have been brought to justice.Judging from the current investigation, Lai Xiaomin's suspected serious violation of discipline and law has caused serious consequences, which are unprecedented in state-owned financial institutions, especially central financial institutions.
The National Commission for Discipline Inspection of the Central Commission for Discipline Inspection used three special features in its evaluation of Lai Xiaomin——the mass reaction was particularly strong, the corruption problem was particularly serious, and its nature was particularly bad.
Later on October 15, the website of the Central Commission for Discipline Inspection and the National Supervisory Commission played a video clip of Lai Xiaomin's confession. On the screen, Lai Xiaomin, who was wearing a silver-gray sweater and had gray hair, said, "If you don't reach out, you will be caught."This peasant boy from Ruijin, Jiangxi Province, an old revolutionary area, is determined to seek a higher career development. Now, his personal fate will come to a tragic end.According to the analysis of many senior financial professionals, Lai Xiaomin may face a very heavy trial result for being involved in such a serious economic crime.
I. The largest corruption case in New China
Poverty limits our imaginations!More than one reader sighed after reading the series of investigations of Lai Xiaomin by Caixin.
Previously, Caixin exclusively reported that after the Lai Xiaomin case, the investigators found 270 million yuan in local and foreign currencies equivalent to RMB 270 million in cash in his residence.How many tons of cash are hidden?!|Investigation of Huarong Case VIII).This detail immediately caused an uproar at home and abroad.A person familiar with the case told Caixin reporter that this is only the total cash value of RMB and foreign currencies converted into RMB that investigators seized from several residences of Lai Xiaomin in Beijing.One of the residences is located near the Olympic Village on the North Fifth Ring Road. Lai Xiaomin used the ID cards of five people to cover up the fact that he is the actual owner of the property.
But the 270 million cash is just the tip of the iceberg of Lai Xiaomin's corruption case.For example, according to the Caixin reporter, Lai Xiaomin's mother still has 300 million yuan in deposits in her account. It is all the result of Huarong's internal and external relations people taking Lai Xiaomin as a filial son as a breakthrough, and paying tribute to her mother in various ways during the holidays.Since his mother is over 90 years old, she was exempted from legal responsibility this time.According to people familiar with the matter, Lai Xiaomin once expressed his preference for cash.
According to the report of the Central Commission for Discipline Inspection and the National Supervisory Committee, Lai Xiaomin used the convenience of his position or the convenience formed by his power and status to seek benefits for others and accept huge amounts of property and was suspected of accepting bribes; taking advantage of his position to illegally occupy public property was suspected of corruption.
According to the Caixin reporter, there are three 100s in the Lai Xiaomin case: more than 100 apartments, more than 100 related parties, and more than 100 lovers, dozens of them are from within Huarong, and there are even famous female stars.
The National Commission for Discipline Inspection of the Central Commission for Discipline Inspection stated that Lai Xiaomin did not truthfully explain the problem when organizing the inquiry, and did not report personal matters in accordance with regulations.As previously reported exclusively by Caixin, Lai Xiaomin had already secretly divorced his ex-wife, and he had a pair of twin young sons in Hong Kong, but he never reported the situation to the organization.
According to the Caixin reporter, Lai Xiaomin's office is quite luxurious.The official bulletin pointed out that Lai Xiaomin violated the spirit of the eight central regulations, talked about ostentation, ostentation, squandered and wasted state property, organized public banquets in violation of regulations, frequently accepted banquets from private business owners in private clubs and high-end restaurants, and arranged or accepted public funds from subordinate units to receive relativestravel.
A person familiar with the matter told Caixin reporter that Huarong has many overseas training courses in the United States, Europe, Hong Kong, Macao, Taiwan, etc., but actually arranges for Lai Xiaomin's mistresses and related households to take vacations and travel.For example, public information shows that on December 5, 2016, Huarong held a 10-day training course on corporate governance and asset management business innovation in Singapore, and the organizer was the Singapore International Talent CenterThe center has hosted Huarong training for many times.
Within Huarong's various subsidiaries, Lai Xiaomin has arranged for many of his mistresses to serve, some of whom are senior executives.In this regard, it is said that Lai Xiaomin's management mantra is: there is a priority for positions, and there is no age.This means that within Huarong, mistresses who can be assigned to important positions, such as the chairman and general manager of a certain company in Huarong, are people who are older than him.
Relevant departments have found out that Lai Xiaomin developed a certain real estate project in Zhuhai City, Guangdong Province through Huarong Real Estate and other subsidiaries. There are a total of 120 suites, of which 100 suites were distributed to his ex-wife and many mistresses through fake lottery.An insider revealed to a Caixin reporter that some of Lai Xiaomin’s mistresses could make a lot of money by shaking their numbers and then selling their houses;give others.The whole process ate several rounds and was insatiable.
The National Commission for Discipline Inspection of the Central Commission for Discipline Inspection mentioned in the circular to Lai Xiaomin that he was corrupt, morally corrupt, and lived a luxurious life... He had engaged in power and sex transactions with many women, and his private life was rotten.
II. Where does the money come from
Exactly how Lai Xiaomin emptied state assets and how much loss he caused is yet to be prosecuted by the procuratorate.Judging from the progress of the current investigation, the situation can be described as shocking.
In the report of the Central Commission for Discipline Inspection and the National Supervisory Commission, the official unusually used the five words "willing to be hunted".The so-called hunting comes from various problem enterprises.The Central Commission for Discipline Inspection and the National Supervision Commission stated that Lai Xiaomin violated work discipline, violated regulations and decided on major company matters, and intervened in specific projects by leapfrogging.
In the first financial report released by Huarong after Lai Xiaomin's accident, Huarong accrued 12.053 billion yuan in financial asset impairment losses, an increase of 155.63% year-on-year.According to Huarong’s executives in an exclusive interview with a Caixin reporter, in the first half of the year, Huarong made a new provision of 12.9 billion yuan and made a corresponding provision for bad debts.
This part of the huge impairment loss of financial assets all came from the risk projects of Lai Xiaomin's period.As previously reported by Caixin, Huarong’s holdings in Tianyuan Manganese, Zhonghong (000979.SZ), Huaxin Energy, BOCO Group (*ST Xintong, 600289.SH), HNA Group, Jiangsu Baoqianli, Huishan Dairy(06863.SZ), Landing International (00582.HK) and many other projects have a large number of risk exposures.For example, from the end of 2017 to the beginning of 2018, in projects such as Tianyuan Manganese and Tianyuan Finance, Lai Xiaomin had violated regulations and asked a number of subsidiaries, including Huarong Securities, to provide Tianyuan Manganese with 20 billion yuan in structured financing.Fang subscribed for the inferior part of it, with a scale of 12 billion yuan, and the whereabouts of the funds are unknown and need to be verified.
A supervisor told the Caixin reporter that there were clues that Lai Xiaomin transferred tens of millions of dollars abroad through a project of Huarong, but the supervision did not penetrate at that time, and it was only a little bit.
As previously reported by Caixin, Huarong borrowed from the country’s credit and issued bonds at low cost in the offshore market for financing, and then provided equity and debt financing to certain industrial and commercial enterprise relations to earn interest spreads.Since this business model is gradually converging to the bank's lending model, Huarong's valuation PB has always been close to that of the bank.Now, due to the large amount of financial asset impairment losses and the increase in interest expenses, Huarong’s performance in the first half of the year was dismal. Its net profit attributable to shareholders was 684 million yuan, a year-on-year decrease of 94.88%, which was only one-twentieth of the same period last year.
For this semi-annual report, the audit agency Deloitte still issued a qualified audit report because Huarong failed to assess the possible impact of the former chairman Lai Xiaomin’s involvement on the financial statements, including the valuation of certain special-structured fund investments and loans.value and recyclability.
III. Why the mass reaction is strong but the investigation is ineffective
He may be the one with the most reporting letters in the country.A senior regulator pointed out to a Caixin reporter.Over the years, there have been constant reports on Lai Xiaomin within Huarong, and the miracle is that he was safe and sound before the incident.
Since Lai Xiaomin worked in the Planning Department of the People's Bank of China in his early years, he was famous for his bold actions.After the establishment of the China Banking Regulatory Commission in 2003, Lai Xiaomin showed a more flamboyant work style during his work in the general office, so he was politely persuaded to transfer to the Beijing Banking Regulatory Bureau and Huarong to work.However, he later became a reserve cadre of the China Banking Regulatory Commission, which attracted the attention of the industry.
In recent years, various reports against Lai Xiaomin have continued.Among them, the issue of abnormal interest transfer between Huarong and Ningxia company Tianyuan Manganese has long been handed over to the regulatory authorities.However, the results of the investigation team sent by the regulatory authorities to Huarong were nothing.
According to public information, many small and medium-sized investors have reported Huarong’s blood transfusion to some listed companies such as Sunshine Kaidi (*ST Kaidi, 00939.SZ) and BOCO Group.For example, in 2011, when the major shareholder of *ST Kaidi reduced its holdings, Huarong took over the offer through its affiliated company, Rongdexin (Tianjin) Equity Investment Management Partnership, with a total price of nearly 600 million;Another affiliated company, Huarong Yufu Capital, invested 2 billion yuan in Sunshine Kaidi.But at that time, *ST Kaidi had fallen by nearly 70%.
Xu Caiyuan, a minority shareholder of *ST Kaidi, once reported to the China Securities Regulatory Commission with his real name. The logic is relatively clear: there is no love for no reason in the world. Why did Sunshine Kaidi ask the state-owned enterprise China Huarong to pay for it?Want to pay?………………………... Huarong used the money from the Ministry of Finance to pay for a private enterprise, and lost more than half of it. The people's money was wasted by the Ministry of Finance and Huarong assets.
V．Corruption in the cadre system
Different from the previous descriptions of cronyism among fallen officials, which led to the deterioration of the political ecology of the organization, this time the Central Commission for Discipline Inspection and the National Supervisory Committee used three words: appointing people only for power, appointing people for profit, and appointing people only for circles to define Lai Xiaomin's role in the selection and appointment of cadres.Procedural problems, saying that it seriously pollutes the political ecology of enterprises.
In terms of appointment, according to insiders in Huarong, Lai Xiaomin has arranged for many children of high-ranking officials in Huarong, including many children of provincial and ministerial-level officials.Many people in Huarong are the children of the leaders of the Ministry of Finance, and there are also many relatives and friends of local officials.Lai Xiaomin wants to use this to gain political capital.
In terms of appointing people for profit, Lai Xiaomin's selling of officials and nobles is also Huarong's internal open secret.In the confessions recently submitted by Huarong's middle and high-level cadres, many people confessed to giving money and gifts to Lai Xiaomin in the past.When you become the leader of a subsidiary company, you become the God of Wealth.Insiders of Huarong told Caixin reporters that during Lai Xiaomin’s era, Huarong’s internal price was clearly marked: 300,000 yuan for entry into Huarong, 500,000 yuan for a part-time official, and 1 million yuan for a subsidiary leader...
In the Renrenwei circle, as Caixin previously reported, Lai Xiaomin organized the Jiangxi Gang in Huarong, promoting his Jiangxi fellows and Jiangxi University of Finance and Economics classmates.Because the first two digits of the Jiangxi ID card number are 36, Huarong people once laughed at themselves as Bureau 36.
After Huarong's new team came to power, Huarong has carried out a series of personnel adjustments in succession, aiming to set things right on the premise of clarifying responsibilities, especially before and after the National Day holiday.According to Caixin reporters, at the general manager level of the head office, such as Li Yonghua, general manager of the planning and finance department, Liu Hao, general manager of the subsidiary management department, Lin Feng, general manager of the audit department, etc., were dismissed, and some were appointed; at the subsidiary levelHuarong International, Huarong Securities, Huarong Trust, Huarong Zhiyuan, Huarong Real Estate, Huarong Consumer Finance Co., Ltd., Huarong Emerging Industry Investment Management Co., Ltd., and Huarong Overseas Chinese Asset Management Co., Ltd.Senior executives such as the company's divisions and subsidiaries' top leaders have been replaced one after another.
In addition to Bai Hui, former general manager of Huarong International, Guo Jintong, former deputy general manager, Shen Yiming, former chairman of Huarong Trust, Ye Tianfang, general manager, Zhu Xianzhong, former chairman of Huarong Securities, Wang Pinghua, former chairman of Huarong Real Estate, and former chairman of Huarong Zhiyuan.Chairman Lai Ruihua was replaced earlier, Huarong Securities Vice Chairman Zhang Xiaoai, Deputy General Manager Cai Hongyan, Secretary of the Disciplinary Committee Peng Fang, Chairman of the Board of Supervisors Wang Shuiyang, Chairman of Huarong Emerging Industry Investment Ning Keping, former Vice President of Huarong Overseas ChineseManager Zeng Jianyong and others were also dismissed.Among them, there are many examples of being held legally responsible for the case.
In addition, Huang Xianhui, the general manager of Huarong Beijing Branch, lost contact before the National Holiday.The Huarong Party Committee Organization Department appointed the new general manager of Huarong's Beijing branch without issuing a dismissal document for Huang Xianhui.According to Caixin reporter, because of his close relationship with Lai Xiaomin, Huang Xianhui ranks first among Lai Xiaomin's Four King Kongs, and is as famous as Hu Jianjun, Zhu Xianzhong and others.
At present, Huarong is still in the process of accelerating the liquidation of non-financial assets and the removal of Lai Xiaomin's poison.A senior financial executive also lamented: Huarong is worthy of being a central enterprise with a financial license, but the entire group is safe and sound.If such a thing happened to private enterprises, would there be such a result?■
