According to a report by China Economic Weekly on January 29, on the evening of January 15, 2019, the news that Zhao Zhengyong, the former secretary of the Shaanxi Provincial Party Committee, was under investigation was announced to the public.A person familiar with the matter revealed to the reporter of China Economic Weekly that Liu Juan, a female Hong Kong businessman who has a close relationship with Zhao Zhengyong, was also taken away, but this news has not been confirmed.

In 2005, it was precisely because of Liu Juan's intervention that the 100 billion mineral rights case was triggered.

Liu Juan

In April 2006, Xi'an Geological and Mineral Exploration and Development Institute of Shaanxi Provincial Bureau of Geology and Mineral Resources (hereinafter referred to as Xi'an Exploration Institute) and Hong Kong Yiye Investment (Group) Co., Ltd.Luo Jingtian signed the contract.In 2005, Polo Minefield was designated by the Shaanxi Provincial Government as a supporting coal mine for the 2.4 million tons of methanol MTO project (hereinafter referred to as the methanol MTO project) invested by Hong Kong Yiye.

However, in August 2003, the Western Exploration Institute signed a contract with Yulin Keqilai Energy Investment Company (hereinafter referred to as Keqilai) to cooperate in the exploration of coal resources in the Polo-Hongshiqiao area.The problem of one daughter marrying twice arose from this.

From May 2005 when Keqilai sued the Western Exploration Institute to the Shaanxi Higher People's Court, the litigation around the ownership of the exploration rights of the Poluo Minefield lasted for 12 years. Until December 2017, the Supreme Court made the final judgment: Keqilai andThe contract signed by the Western Exploration Institute is legal and valid and will continue to be performed (see China Economic Weekly's 2018 No. 6 report on the 12-year dispute over Shaanxi's 100 billion mining rights).

It was also during these 12 years that Liu Juan repeatedly operated around the methanol MTO project and the Boluo Coal Mine, and successively attracted central enterprises and Shaanxi state-owned enterprises to enter the project. When the dispute over the exploration right of the Boluo Minefield was pending, she had already cashed out billions of yuan.

This is using Shaanxi resources to obtain Shaanxi state-owned assets.Zhao Faqi, the legal representative of Ketchley, told the reporter of China Economic Weekly.

The central enterprise China Chemical only stands on the platform, no money, no profit?

Since signing a cooperation agreement with the Yulin Municipal Government in November 2004, the methanol MTO project has been under the name of two companies: Hong Kong Yiye and China National Chemical Engineering Corporation (hereinafter referred to as China Chemical).

In October 2005, after the Shaanxi Provincial Development and Reform Commission identified the Polo Wellfield as the supporting wellfield for the methanol MTO project, Sinochem and Hong Kong Yiye jointly submitted a report to the relevant leaders of Shaanxi Province at the time, urgently requesting to participate in the exploration of the Polo Wellfield: especiallyIt is urgent to speed up the prospecting work for our project's supporting mine field... As the project owner, we hope to allow us... to participate in the prospecting work of the coal resources allocated to the project.

However, in April 2006, when the cooperative exploration contract was signed with the Western Exploration Institute, Party A only had Hong Kong Yiye as a company.

It is stipulated in the cooperative exploration contract that after the development project of Hong Kong Yiye is approved or the Provincial Development and Reform Commission files and approves the implementation, the Western Exploration Institute shall transfer the exploration rights of the Polo Minefield to Hong Kong Yiye in accordance with the law;The results of the survey and the value-added value of the prospecting rights arising therefrom are all owned by Hong Kong Yiye.

Half a year ago, China Chemical, a central enterprise that reported to the leaders of Shaanxi Province that it wanted to participate in the exploration, did not get any money in the end.

Although he did not participate in the signing of the cooperative exploration contract, the cooperation between ChemChina and Liu Juan has not ended.

In June 2006, Sinochem and Shaanxi Yiye Investment Co., Ltd. (hereinafter referred to as Shaanxi Yiye) jointly established Shaanxi Sinochem Yiye Energy Investment Co., Ltd. (hereinafter referred to as Yiye Energy Investment), with Liu Juan as the legal representative.Executive Director and General Manager.

China Chemical and Shaanxi Yiye subscribed capital contributions of 20 million yuan and 180 million yuan respectively, each accounting for 10% and 90% of the registered capital, and the initial capital contribution of 70 million yuan came entirely from Shaanxi Yiye.

The reporter noticed that there is such a clause in the articles of association of Yiye Energy Investment: the equity of Sinochem can only be transferred to Shaanxi Yiye or to a third party designated by it as needed, but the equity of Shaanxi Yiye can be freely transferred to a third party.China National Chemical Corporation's transfer of equity in the joint venture company is restricted.

After its establishment, Yiye Energy Investment began to manage the methanol MTO project.In July 2006, the Shaanxi Provincial Development and Reform Commission filed a record for the 2.4 million tons of methanol MTO Phase I 600,000 tons of methanol project.

The supporting Boluo Coal Mine project is also advancing. In December 2006, the National Development and Reform Commission agreed to carry out preliminary work on the Boluo Coal Mine. The construction scale of the first phase is 5 million tons per year.In the first half of 2007, the Polo Mine has successively obtained land pre-examination, environmental assessment, water assessment and other procedures.

When applying for the above procedures, the project subject of the Polo Mine is Shaanxi Sinochem Yiye Energy Co., Ltd. (hereinafter referred to as Yiye Energy).A person familiar with the matter told the reporter that Liu Hao, the legal representative of Yiye Energy, is Liu Juan's elder brother, and its business license shows the establishment date as August 29, 2007.

That is to say, the Methanol MTO project and the Boluo Coal Mine Project were incorporated into Yiye Energy Investment and Yiye Energy respectively.However, when Yiye Energy obtained various approval procedures in 2007, the Supreme Court was hearing the appeal of the Western Exploration Institute.Previously, the Western Exploration Institute refused to accept the judgment made by the Shaanxi Higher Court in October 2006 that the cooperative exploration contract with Ketchley was valid and both parties would continue to perform it.

If the prospecting rights and mining rights are compared to land and real estate respectively, Yiye Energy has not even obtained the land, and all the real estate procedures have been completed.Zhao Faqi told a reporter from China Economic Weekly.

According to people familiar with the matter, Liu Juan is very energetic and can invite various leaders to her platform.

On June 5, 2007, Yiye Energy Investment’s 2.4 million tons of methanol MTO Phase I 600,000 tons of methanol project held a groundbreaking ceremony. In addition to Hong Feng, the then vice governor of Shaanxi Province, Zheng Silin, the former Minister of Labor and Social Security, also attended the ceremonyCeremony and speeches.

One year after the first phase of the methanol MTO project started and the supporting Boluo Coal Mine received various approvals, China Chemical, a central enterprise, withdrew.In July 2008, Sinochem transferred its 10% stake in Yiyeneng Investment to Shaanxi Taixing Real Estate Co., Ltd. with Liu Hao as the legal representative.At the time of exit, China Chemical's actual investment amount was zero.

The state-owned Yanchang Petroleum took over and invested 250 million shares based on a false evaluation report?

Two months after China Chemical withdrew, Shaanxi Yanchang Petroleum (Group) Co., Ltd. (hereinafter referred to as Yanchang Petroleum) took over.Yanchang Petroleum is a local state-owned enterprise in Shaanxi. This energy and chemical company ranked 325th in the world's top 500 in 2016.

In September 2008, Yanchang Petroleum reported its cooperation plan with Shaanxi Yiye to the Shaanxi Provincial Development and Reform Commission, planning to take a stake in Yiye Energy Investment and Yiye Energy, which are controlled by the latter, to participate in the 2.4 million tons of methanol MTO project and the annual production of 10 million tonsPolo Coal Mine Project.

The cooperation plan shows that Yiye Energy Investment and Yiye Energy, which were established in 2006 and 2007, have already reached 269 million yuan and 221 million yuan at this time.

In November of that year, Yanchang Petroleum signed two agreements with Shaanxi Yiye. The former transferred 51% of the shares of Yiye Energy Investment and Yiye Energy from the latter, at a price of 137.19 million yuan and 112.71 million yuan respectively, with a total capital of 249.99 million yuan.billion.

A reporter from China Economic Weekly noticed that the two supplementary agreements stated that all construction investment funds within the first 24 months of project construction will be temporarily raised by Yanchang Petroleum.advance payment, and said that in case of special circumstances, the advance payment period can be extended for 6 months.

This agreement means that although the two companies cooperate, the funds for the early construction of the project actually come from the state-owned Yanchang Petroleum.Methanol plant construction started in June 2007The first phase of the TO project is scheduled to be completed and put into trial operation in August 2009, which means that the planned construction period of the project is 26 months.

Less than a month after Yanchang Petroleum entered the Bureau, in December 2008, it and Shaanxi Yiye jointly reported to the Shaanxi Provincial Development and Reform Commission that the construction of the first phase of the Boluo Coal Mine Project had started, and it was urgent to handle the transfer of the exploration right of the Boluo Mine and the approval of the National Development and Reform Commission.Related procedures.

The situation is quite similar to that three years ago when Shaanxi Yiye La state-owned enterprise China National Chemical reported to provincial leaders requesting to participate in the Polo mine field exploration.At that time, the Supreme Court was still hearing a case concerning a dispute over the cooperative exploration contract between the Western Exploration Institute and Keqilai.It was not until November 2009 that the Supreme Court made a second-instance ruling, holding that the facts found in the original judgment were unclear and remanded the case for retrial.

In August 2009, the Shaanxi Provincial Development and Reform Commission agreed to extend the cooperation between Petroleum and Shaanxi Yiye; in February 2010, the two parties signed an equity transfer contract, which also included a confidentiality clause, and the penalty for breach of contract was 5 million yuan.At this point, only the Shaanxi Provincial State-owned Assets Supervision and Administration Commission’s approval is needed before Yanchang Petroleum invests 249.9 million yuan in the two companies actually controlled by Liu Juan.

In April 2010, Yanchang Petroleum introduced the assessment situation of Yiye Energy Investment and Yiye Energy in its request to the State-owned Assets Supervision and Administration Commission of Shaanxi Province: Shaanxi Zhengdexin Co., Ltd.Letter) issued two asset evaluation reports. As of December 31, 2008, the evaluation base date, the net assets of the two companies exceeded 280 million yuan and 260 million yuan respectively, totaling nearly 550 million yuan.

Based on this, the two parties agreed to price the two companies at 490 million yuan, and Yanchang Petroleum invested 249.9 million yuan to purchase 51% of the equity of the two companies.

The Provincial State-owned Assets Supervision and Administration Commission subsequently rejected the plan on the grounds that the evaluation results exceeded the one-year limitation period.In June of that year, Yanchang Petroleum took two new assessment reports to the provincial SASAC for filing, and the assessment base date was changed to December 31, 2009, but the net asset assessment results of the two companies remained unchanged.

Is investing in Yiye Energy really worth that much money?

In July 2010, Zhengdexin sent a letter to the State-owned Assets Supervision and Administration Commission of Shaanxi Province, saying that the two evaluation reports mentioned by Yanchang Petroleum had never been issued, and that the seals of the two reports were forged.Subsequently, the State-owned Assets Supervision and Administration Commission of Shaanxi Province failed to file the two asset appraisal reports with serious problems, and pointed out that Yanchang Petroleum almost caused a security risk of hundreds of millions of dollars. It also suggested that it study whether the incident constituted commercial fraud, and suggested that theThe incident was reported within the scope of the company under supervision.

Wu Dengchang, then vice-governor of Shaanxi Province, said: “The SASAC is serious and responsible in its review and should be fully affirmed. Please extend it and make corrections seriously. It is recommended not to report it anymore.”

The equity transfer has not been completed, and Yanchang Petroleum has advanced nearly 80 million yuan

In June 2010, Zhao Zhengyong became the acting governor of Shaanxi Province just before Yanchang Petroleum's shareholding plan was suspended by the State-owned Assets Supervision and Administration Commission of Shaanxi Province.

Afterwards, the Shaanxi provincial government held two special party group meetings in August and November 2010. First, an investigation team was formed, which concluded that the contract signed between Kechley and the Western Exploration Institute in 2003 was invalid;The dispute over the mining rights of the Poluo Minefield involves the investigation and correction of relevant issues by relevant units.

In March 2011, Yanchang Petroleum once again asked the Shaanxi Provincial State-owned Assets Supervision and Administration Commission for instructions on the cooperation with Shaanxi Yiye. Unlike the previous version, it proposed that Shaanxi Yiye merge Yiye Energy Investment and Yiye Energy first, and Yanchang Petroleum then acquire the merged company51% equity.

Can this cooperation plan be successful?

Zhao Zhengyong, former secretary of the Shaanxi Provincial Party Committee, was involved in the dismissal

In the three days between the end of March and the beginning of April 2011, the case of the dispute over the mining rights of the Poluo Minefield and the cooperation between Yanchang Petroleum and Shaanxi Yiye all took a turning point.On March 30 of that year, the Shaanxi Provincial Higher Court made a judgment completely opposite to that in 2006, ruling that the cooperative exploration contract between Kechlai and the Western Exploration Institute was invalid.

The next day, March 31, the Supervision Department of Shaanxi Province reported to Zhao Zhengyong the status of the investigation and handling of the dispute over the mining rights of the Poluo Mine Field.After Zhao Zhengyong approved the report, 14 civil servants from Shaanxi Provincial Bureau of Geology and Mineral Resources and Industry and Commerce Bureau were held accountable.Some people who are familiar with the political situation in Shaanxi believe that this is Zhao Zhengyong knocking the mountain to shake the tiger.

On the third day, April 1, the State-owned Assets Supervision and Administration Commission of Shaanxi Province agreed in principle to extend the cooperation between Petroleum and Shaanxi Yiye and approved the project approval.However, Yanchang Petroleum is required to do a good job in due diligence and feasibility study, and to carry out asset verification and audit evaluation, and formulate specific plans to submit to the provincial SASAC for approval.

After obtaining the approval in principle from the State-owned Assets Supervision and Administration Commission of Shaanxi Province, Yanchang Petroleum and Shaanxi Yiye began to accelerate the construction of the project:

The two parties established the Yanchang Yiye Coal Chemical Project Construction Team in May 2011, and proposed that Yanchang Petroleum would raise project funds.Information shows that the total planned investment of the project reaches 24.5 billion yuan; the special meeting on the Yanchang Yiye project held in September proposed that before the equity transfer is completed, the Yanchang Yiye Preparation Office is the subject of the contract.

A reporter from China Economic Weekly noted that this preparatory office had been established two years ago.

It is worth noting that the equity transfer mentioned in the cooperation between Yanchang Petroleum and Shaanxi Yiye has never been followed.Yanchang Petroleum has paid tens of millions of yuan in advance for project construction without obtaining equity.

In 2013, only the visible works were on the ground, including the office building and the canteen in the factory area, the main and auxiliary shafts of the coal mine, which were each constructed 400 meters away, and so on.

On March 7, 2013, the fund payment situation of Yanchang Yiye Project Preparation Office showed that since May 25, 2011, Yanchang Petroleum has paid more than 79 million yuan in total, including a loan of 6.5 million yuan from Yiye Energy.

In 2013, Zhao Faqi reported the loss of Yanchang Petroleum's state-owned assets in real name.Since then, the Shaanxi Provincial State-owned Assets Supervision and Administration Commission mentioned in its investigation report submitted to the Provincial Commission for Discipline Inspection that the audit and asset evaluation related to the equity transfer between Yanchang Petroleum and Shaanxi Yiye have not been completed, the specific price of the equity transfer has not been determined, and Yanchang Petroleum has not paid the equity transfer amount..Payments of more than 79 million yuan are advance funds.

In April of that year, the Shaanxi Provincial Commission for Discipline Inspection replied to the Provincial State-owned Assets Supervision and Administration Commission, requiring it to make verification conclusions and clear determinations on six issues, including whether there was conspiracy to defraud state-owned assets, and then report directly to the Provincial Party Committee and Provincial Government.

After that, there was no progress on the matter.In an interview with a reporter from China Economic Weekly, Zhao Faqi said that he suspected that Zhao Zhengyong suppressed this matter.

With Yanchang Petroleum having spent more than 79 million yuan on projects within two years, in April 2014, Liu Juan sold 100% of the equity in Yiye Energy Investment and Yiye Energy to a Hong Kong company for 2.1 billion yuan..A person familiar with the matter revealed to a reporter from China Economic Weekly that the equity transfer contract signed between Yanchang Petroleum and Shaanxi Yiye in 2010 seems to have not been terminated.

In other words, Liu Juan came up with nothing with almost no investment: she attracted the state-owned enterprise Yanchang Petroleum to advance funds for construction projects, but Yanchang Petroleum did not receive any income; the previous valuation in 2008 (actually a forgery) was 5.5The two companies, worth 100 million yuan, sold 2.1 billion yuan in 2014, and both of them went into Liu Juan's pocket.

At that time, the Supreme Court had suspended the hearing of the appeal filed by Kechilai in April 2011, pending the results of the relevant administrative review by the former Ministry of Land and Resources. The mining rights dispute was far from over.

(China Economic Weekly reporter Chen Weishan | Shaanxi Report)