On the evening of the 18th, the fourth episode of the five-episode TV special "Zero Tolerance", "Systematic Governance", was broadcast on the CCTV comprehensive channel of the Central Radio and Television Corporation, which exposed a large number of details of the financial corruption case of Sun Deshun, former deputy secretary of the party committee and president of China CITIC Bank Co., Ltd.
Increase real estate loans for personal gain
In March 2020, the State Supervision Commission of the Central Commission for Discipline Inspection announced that Sun Deshun was a typical example of a particularly serious problem of corruption in the financial sector, a particularly bad nature, and a particularly large amount, and expelled him from the party and transferred the suspected crime issue to the procuratorial organs for review and prosecution according to law.
Fan Xiangpeng, a staff member of the Central Discipline Inspection Commission and the State Supervision Commission: He is concerned about what makes money quickly and achieves results quickly. He tended to lend to real estate, and when he presided over the president's office meeting, he openly and bluntly demanded that the whole bank must stop the manufacturing loan immediately, even if it was 100% mortgaged.
The long-term risks posed by china's excessive proportion of loans to the real estate industry gradually emerged. In February 2020, the China Banking and Insurance Regulatory Commission issued a huge administrative penalty fine of 22 million yuan to China CITIC Bank, and 13 of the 19 penalties involved real estate business.
In addition to pursuing political achievements, another reason why Sun Deshun increased real estate loans was to seek personal interests. The investigation found that some real estate company owners were close to him and there was an exchange of interests. For example, a real estate company owner once sent 10 million yuan to the company actually controlled by Sun Deshun in the name of investment, and the return was more than 4 billion yuan through Sun Deshun's approved loan credit.
Think that receiving cash is too low-end
There are three layers of "shadow companies" to cover up power and money transactions
Sun Deshun has worked in the banking industry for more than 40 years, and is the only cadre in China's financial circles who started from the counter teller at the most basic level of bank outlets and gradually grew into the president of the head office of a state-owned bank. He considers himself a skilled business and tries to cover up power and money transactions through elaborate design.
Fan Xiangpeng, a staff member of the Central Commission for Discipline Inspection and the State Supervision Commission: He has a characteristic that he does not accept cash, and he believes that receiving cash is too low-end, too simple and rude. The way he cashed out his interests was very professional, and he covered up layer by layer, using unique financial means and products to cover up.
The survey found that Sun Deshun is a typical example of the use of "shadow companies" and financial means to complete the transmission of benefits, and its degree of specialization and complexity is quite rare. He arranged two old subordinates as agents and opened two investment platform companies, and the agents of the two companies were actually just "shadows" of Sun Deshun's endorsement.
The person in charge of the platform company controlled by Sun Deshun Warm: I am a voice maker at the front desk, and there is only one person behind me, that is, Sun Deshun. The salary of our main management personnel and the core business decisions of the company are determined by him, down to how the corresponding shares are distributed.
On the one hand, Sun Deshun used public power at China CITIC Bank to approve loans for business owners; correspondingly, some of these bosses injected huge amounts of money into the platform companies he actually controlled in the name of investment, and some sent high-quality investment projects or investment opportunities; platform companies used the funds provided by these bosses to invest in the projects provided by those bosses, make money with money, and share profits and dividends with the bosses to form a community of interests.
Sun Deshun designed a heavy bunker with an extremely complex structure, two platform companies are his core management team, is the first layer of "shadow" hidden in front of him; under the platform company, more than a dozen project companies have been set up as the second layer of "shadows", the project companies and bribery companies are not direct transactions, but the two sides have each set up a shell company as the third layer of "shadows", and the multi-layer shadow companies are nested layer by layer.
The transaction entity itself has been ghosted, and the capital transactions have been disguised as various seemingly legal financial products and equity investment agreements, using "shadow transactions" to convey interests and then cast a layer of fog.
Connect directly with enterprises
Use of credit approval power for personal gain
At the end of 2014, an energy company applied for a loan from China CITIC Bank, and because the energy company had already suffered a debt crisis, it was a highly indebted enterprise and generally did not issue loans. However, with the intervention of Sun Deshun, the 4 billion yuan loan was issued to the enterprise, and non-performing assets were soon formed. In order to express his gratitude to Sun Deshun, the actual controller of this company signed a capital increase agreement with the platform company controlled by Sun Deshun, so that the company controlled by Sun Deshun actually made a profit of 100 million.
There are many such power and money transactions, and the packaging methods for enterprises to convey benefits to Sun Deshun are various, but in exchange for the same things, that is, bank loans.
Sun Deshun: In the process of interacting with some entrepreneurs, I always want to seek some benefits for myself or my own stakeholders.
Sun's case highlights the importance of the key power to govern credit approval. Bank loan approval is generally submitted by loan customers to submit application materials, in accordance with the procedure to report to the approval level, while Sun Deshun often directly docks with the enterprise, and then arranges for subordinates to do, using the procedure inverted way to operate illegally.
According to the system design of China CITIC Bank, the president has only one veto power over credit approval, and has no approval power; the approval must be voted by the credit approval meeting collectively, and the main leaders must speak last. But in fact, Sun Deshun often ignored these systems and directly interfered in credit approval, and the bank's internal control mechanism lost its role in the face of the power of the number one.
Sun Deshun: Judging from the laws I have violated, I still have greed, and I am particularly remorseful, and no matter how much I regret it, I have no regret medicine.
Power must be put in the cage of the system
Sun Deshun's case also reflects that the reasons for the lack of supervision in the financial sector are both the problem of its own internal supervision system is not perfect, and the problem of inadequate industry supervision. On the one hand, there is a problem of loose and soft performance of duties, on the other hand, some systems and regulations in the financial field need to be improved urgently, and there are deficiencies in the regulatory system in some intersecting and innovative fields, which has led to some financial risks and financial chaos.
The essence of corruption is the abuse of power, and it is necessary to put power into the cage of the system, set up power, standardize power, restrict power, and supervise power according to discipline and law.
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(Source: CCTV News)
Editor-in-chief: Liu Qian
Editor-in-charge of this issue: Chen Bingran
Proofreader of this issue: Niu Huiying