Trillions of central enterprises withdrew, with a huge loss of 102.9 billion yuan a year, and two executives were greedy for 2.9 billion yuan

There are many financial stories

2024-05-29 11:56Published in Guangdong

Boy! Another 1.1 billion was greedy, which should be the most corrupt central enterprise in history.

The latest news, Bai Baihui, the former general manager of China Huarong International Holdings Co., Ltd., accepted bribes of 1.108 billion yuan and was sentenced to death in the first instance. And his boss, Lai Xiaomin, chairman of China Huarong Asset Management Company, was even more embezzled more than 1.788 billion yuan, and the two embezzled a total of 2.9 billion yuan.

Although Bai Baihui's embezzlement amount is not as good as Lai Xiaomin's, he has created a new speed of corruption. Someone calculated that Lai Xiaomin embezzled more than 1.788 billion yuan in 10 years, which is 490,000 yuan a day, and 60,000 yuan per hour according to the 8-hour work system. And Bai Baihui was greedy for 1.108 billion yuan in 4 years, and he was greedy for 380,000 yuan per hour.

It should be noted that there are still a number of fallen executives in the "Huarong Department" who have not been tried, including Wang Pinghua, the former chairman of Huarong Real Estate, Qin Ling, the former chairman of the board of directors of Huarong Investment, and others. The amount of money embezzled by these people is probably an astronomical amount.

China Huarong Asset Management Corporation is one of the four major asset management companies established in 1999 and is a large state-owned enterprise managed by the Ministry of Finance. The background of the establishment is to receive the non-performing assets of the four major state-owned banks, and China Huarong is connected to the Industrial and Commercial Bank of China.

According to the original plan, it will take 10 years to deal with these non-performing assets, and then withdraw after the disposal. That is to say, by the completion of the task in 2009, the company has no business and can be closed directly.

But it was also in this year that Lai Xiaomin parachuted from the China Banking and Insurance Regulatory Commission to China Huarong as president and began to take charge of the central enterprise. After graduating from university, Lai Xiaomin successively worked in the People's Bank of China, the China Banking Regulatory Commission and other financial supervision systems, and his ability was very strong, and he became a deputy department-level cadre at the age of 35.

Therefore, after taking over China Huarong, it did not let it close, but began to expand on a large scale. All sectors of finance are involved, such as banks, securities, trusts, and futures, all of which have turned China Huarong into a financial giant.

Lai Xiaomin's method of expansion is merger, and he keeps buying, buying, buying. Where does the money come from? Issuance of bonds. Since 2014, more than $50 billion in U.S. dollar-denominated bonds have been issued. Later, his appetite grew, and he also started high-risk projects such as credit and overseas investment. Not only do I buy it at home, but I also buy it abroad.

Under the leadership of Lai Xiaomin, China Huarong has grown rapidly. By 2017, China's Huarong assets reached 1.87 trillion yuan and net profit was 26.588 billion yuan, all of which were among the top among central enterprises. Lai Xiaomin also boasted in public: The conscience of heaven and earth, in the past eight years, we have earned 11 Huarong.

In fact, these are all superficial data, do you think that you don't need to repay the debt and borrow money? Moreover, the acquisition of so many assets, how much of it brought profits, in the years of crazy expansion, China Huarong accumulated a large number of "toxic assets".

In 2020, China Huarong exposed a huge loss of 102.9 billion yuan, setting a new record for the loss of Chinese enterprises. But do you think this loss was caused by a year? In the years when Lai Xiaomin was in charge, the so-called profits may have been fake, but all the losses were calculated to one year.

Why? Deloitte, which was responsible for auditing China Huarong, was punished by the Ministry of Finance for failing internal control and risk control and serious distortion of accounting information from 2014 to 2019. This shows that Huarong and Deloitte are in collusion and have done tricks in finance.

To put it bluntly, Lai Xiaomin is using his identity as a central enterprise to borrow and issue bonds on a large scale, and then make profits from it. In the end, the losses and debts were left to the business, and the money went into personal pockets. And he didn't share it alone, but also brought his classmates, fellow villagers and other interest groups to divide it up.

During Lai's years at the helm, China Huarong effectively became his personal kingdom. One might ask, why did it take so long to be discovered, regulated? In fact, this is determined by the nature of central enterprises, there are only two or three central enterprises in an industry, or even only one, such as the tobacco industry, which is very closed, and it is difficult for outsiders to understand the real situation inside.

Now China Huarong has been merged by CITIC Group and withdrawn from the stage of history, but the trial of Huarong's executives is not over.

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