1988: Back to the human world for a few years

Chapter 527: One Step Ahead (2)

From April 1987 to January 4, Zhuang, the general manager of Xinda Materials Company, incubated 1991 private/public-private joint venture small and micro enterprises in the form of internal loan support, on the pretext of supporting small and micro tertiary industry projects and solving the employment problems of employees' families. During these three years, these small and micro enterprises successively established more than 1 downstream affiliated companies, including a large number of shell companies, and fabricated a relatively complete business network;

Starting from July 1987, Zhuang directed his subordinates to inject funds into these 7 small and micro enterprises in the name of investment and support. He relied on his fictitious business network to purchase products produced by Xinda Materials Company and used the bank accounts of the above-mentioned enterprises to carry out specific procurement and payment operations.

In August 1988, Xinda Materials Company granted first-level cooperation qualifications to 8 small and micro enterprises among the 247 downstream affiliated companies through evaluation and bidding. These 20 small and micro enterprises regularly applied to Xinda Materials for operating expenses in accordance with the operating model determined by Xinda Materials. After review, Xinda Materials Company allocated operating expenses ranging from 20 to 20 yuan to these 11 small and micro enterprises every month; after receiving the fees, the small and micro enterprises transferred the funds to the accounts of Xinda Materials Company and its subsidiaries according to the transfer roadmap provided by Zhuang.

In February 1990, the general manager of Xinda Materials Company, Zhuang, and his joint actors, Chen and Jiang, invited the city's banking system to conduct a new round of asset appraisal. They provided the company with seven false contract agreements and five letters of intent containing false attachments, which resulted in an inflated appraisal value of Xinda Materials Company and a fraudulent loan of RMB 2 million.

From April to June 1990, Xinda Materials Company relied on a total of 4 million bank loans and its fictitious business network to falsely increase sales by a total of 6 million yuan, with a corresponding profit of 841 yuan, accounting for 407% of the net profit for that quarter;

From July to September, the company falsely increased sales by 7 million yuan, with corresponding profits of 9 yuan, accounting for 1016% of the net profit for the quarter;

From October to December, the company falsely increased sales by RMB 10 million and the corresponding profit was RMB 12 million, accounting for 1386% of the net profit for the quarter.

………………

Looking at the due diligence reports on the 20 small and micro enterprises with "first-level cooperation qualifications" in the file bag, as well as the bank statements of the past three years and copies of remittance stubs of highly related accounts, You Yakun couldn't help but twitch his forehead.

He may not care about a series of evidence materials in the file bag, including contracts and paid-in registered capital, provided by the industrial and commercial system and the social security system, but he cannot care about these data and stub copies provided by the banking system.

This is not the future, where you can just retrieve the information you need from the bank system's computer. In this age of hand-written accounts, it is absolutely a frustrating thing to check a company's financial statements and high-frequency remittance accounts for the past three years.

If it is not related to any major case, or if the organization has sent a special team for a surprise audit, do you want the banking system to search through data from three years ago one by one in a warehouse full of account books and bill stubs?
You are so beautiful!
But Yang Mo got it.

What does this mean?
This means that the banking system in DZ City is either afraid to offend the young man in front of them, or is simply secretly in cahoots with him.

He didn't know which of the two was true.

After all, President Liu has been in that position for more than five years, and it is not impossible that he is afraid of a certain executive who has been retained from the previous team behind Yang Mo;
After all, before the banking system became independent, city-level banks not only had to fully respect the opinions of him as the deputy squad leader, but also had to be controlled by the executive directors... The two sides had been together for so long, they must know each other well. If a certain executive named Ye was unhappy, he would reveal some of the old secrets in private. President Liu would probably have no choice but to apply to be transferred to the grassroots level to train his business.

However, considering the current situation in the city, although he did not deny the possibility, the possibility should not be very high;
It's very simple. Everyone knows Ye Tao's current passive situation, and everyone also knows why Ye Tao, the executive director, is so passive. Even if Ye Tao knows some secrets of President Liu, as long as he comes to his office more often to ask for instructions on work and then frankly admits his mistakes, there will be nothing to worry about.

So, it is more likely that...

Has President Liu quietly become friends with Yang Mo?

This isn't right!
Although Yang Mo, who was in charge of the big fund, was in a sense equivalent to an ancient imperial envoy, the Urban Property Fund Company could also be considered a half-imperial unit directly under the imperial court, and many aspects were not subject to his control, and could even directly reach the emperor's ears when necessary;
but……

What does this have to do with you, Liu Qian! ?

Other big funds have dedicated accounts. No matter how much money they raise, you won't be able to use a penny of it, and you won't be able to achieve any results. What good will it be for you to work with them?
However, even though he couldn't understand it, You Yakun was extremely reluctant to see this situation happen.

The reason is simple. DZ City's current fiscal budget is extremely tight.

Since the country's transfer payments are not enough and Yang Mo has always been unwilling to give him face, what should he do?
Then he could only consider finding a solution from the city's banking system... Even if he could only take a roundabout way and find a solution from commercial shell loans, it would greatly ease the city's financial pressure and allow him to show his talents.

You know, over the past year or so, with the shining debut of the DZ City Commercial Demonstration Zone and the sudden rise of township enterprises in some areas, the commercial storage has far exceeded many people's imagination!
What's more, the value of these funds is far more than just helping to circulate local finances. He has been paying attention to the news above. Once the country begins to relax the conditions for foreign investment access, these funds will be an extremely important trump card in his future work of attracting investment.

However, although the local banking systems have not yet become completely independent and have not separated policy-based and commercial businesses, they have already gained more and more autonomy under the guidance of the spirit of the 13th National Congress. Although they still need to fully respect the opinions and instructions of local authorities, they no longer have to do whatever they are told without any compromise as they did a few years ago.

and so……

Thinking of this, You Yakun calmly put the key materials that only needed the intervention of the disciplinary inspection organization to prove the truth back into the file bag, and then nodded slightly in the surprised eyes of the middle-aged man surnamed Geng: "It seems that Xinda Materials is indeed suspected of fabricating transactions, and objectively there is indeed an act of defrauding the support funds of the Urban Property Fund Company. As long as it does not affect the main business, I support General Manager Yang to take punitive debt offsets, including divesting non-performing assets at a low price."

After saying that, You Yakun looked at Yang Mo steadily: "It's just that Xinda Materials Company certainly deserves the punishment, but what about Dehua Biology?"

You Yakun tapped the table gently, with a hint of anger and incomprehension on his face: "Dehua Bio is not only a high-tech model planned by the city, but also an important partner of your Dahua Company's GAP planting project. Last year, it actively participated in the city's pharmaceutical company restructuring process, and plans to join hands with Momo Baiyao to invest heavily and participate in the research and development of several innovative drugs."

"This is a company that has technology, strength, ideals, social responsibility, and is also an important partner of yours... Do you know that a surprise audit without sufficient reasons and evidence will cause great anxiety to other companies in the city? They may even be afraid to participate in various projects led by the Industrial Fund due to various concerns, thus seriously affecting the speed of industrial upgrading in the city!"

At the end, You Yakun was a little agitated, tapping his index and middle fingers like frying soybeans, his tone full of regret: "Boss Yang, it's right to be cautious and to check for risks, but when we carry out our work, we must pay attention to the impact on the masses! We can't hurt the class feelings of our brother companies at will! You rushed into the office of your partner for a surprise audit as if you were treating a class enemy, what do you think others will think!? How can you mobilize those companies in the city to cooperate with your work in the future?"

Looking at You Yakun who lightly disclosed the matter of Xinda Materials Company and turned to make a big fuss about Dehua Biology, Yang Mo's eyes flashed with confusion.

Since there was the case of Xinda Materials Company, the other party should know that their surprise audit of more than a dozen companies that received support funds was not aimless.

The smartest thing to do is to stop here for the time being, not ask about the situations of other units, then go back and use their own advantages and authority, pretend to be deaf and dumb and wait quietly, and then try to get what they want as much as possible in the process of divesting the bad assets at a low price.

But even so, the deputy squad leader still looked like he didn't believe there would be any problem with the Germanized creatures, and he insisted on arguing with each unit one by one...

Isn't he afraid of being slapped in the face by the evidence he has produced?

This is unscientific!
When you are out there in the world, being respectable is the most important thing, especially for an important figure like You Yakun who is in a high position but is new here. He needs to be even more careful about his appearance.

Doubts welled up in his heart, but Yang Mo's expression remained modest: "Mayor You, I don't want to do this either, but the problem is... the problem with Dehua Bio is that it keeps participating in the restructuring of non-performing assets, and then uses various tricks to manipulate accounts receivable to commit financial fraud!"

Upon hearing this, You Yakun seemed to become a little gloomy. "Boss Yang, you are also a cadre of a central enterprise. Dahua Company is also in charge of more than 300 tertiary industry units. You should be very clear that in recent years, it takes a lot of courage and social responsibility for a company to take the initiative to participate in the process of non-performing asset restructuring... How come you say that it has become a means of financial fraud!?"

Yang Mo spread his hands calmly, then with a look, Zhuo Junyue, whose face was becoming increasingly paler, stood up and placed several more documents on the table.

As if he had sensed something unusual, Yang Mo's explanation this time was much briefer, and the person he was explaining to was no longer a professional named Geng.

"1. According to the exchange provided by the bank, Dehua Biotechnology violated the corporate accounting standards and frequently used commercial acceptance bills to delay the provision of bad debts;"

"2. In the restructuring process that it participated in over the past three years, Dehua Biotechnology used targeted debt-to-equity swaps and debt transfers to replace revenue accounts with equity investments... There is nothing wrong with first converting debt into equity and then converting it into accounts receivable, but the frequent debt-to-equity swaps and then the reverse replacement of debt into accounts receivable, and finally the cashing out of the shares in the divested non-performing assets through public-private partnerships to form a financial closed loop as operating income, is very problematic."

"3. In the past three years, the balance of commercial acceptance bills of Dehua Biotechnology has changed abnormally several times. By the end of 1990, the balance of commercial acceptance bills received by Dehua Biotechnology had reached 1432 million yuan without any collateral or other guarantees. In December 1990, there was even a case where the bill was converted into commercial bills (accounts receivable) because the issuer was unable to perform the contract. The amount of the commercial bills was abnormally large, as much as 12 million yuan."

"4. Like commercial acceptance bills, Dehua Bio's overall bad debt provision ratio has also shown abnormal fluctuations over the past three years. It can be clearly seen from the financial data of previous years that the company's overall bad debt provision ratio dropped significantly between 1988 and 1990. It is hard not to think that the company intends to achieve the purpose of whitewashing its performance by adjusting the amount of bad debt provision."

"5. Dehua Bio's targeted debt-for-equity swaps over the past three years have been verified to be unconventional transactions. Among the 39 debt-for-equity agreements signed, the equity offset in 24 agreements lacked rationality. No third-party evaluation agency was hired to conduct equity valuation. Instead, the two parties reached an agreement directly, and the transferee payment was made in one lump sum... Even people with no financial knowledge know that such things are difficult to stand up to scrutiny."

"6, ..." After talking for a while, Yang Mo took the initiative to ask his secretary to run to the confidential room and get several red rope file bags and put them in front of You Yakun. Then he looked calmly at the deputy squad leader whose brows were getting more and more furrowed.

"Mayor You, as for other units..."

“The Second Textile Factory inflated its profits by transferring the equity of its subsidiaries and subordinate peripheral units;”

"Panhe Pharmaceuticals committed financial fraud by forging bank statements and fabricating customer repayments;"

"Deshui Transmission Equipment Factory inflated its revenue by taking advantage of the complex environment of foreign trade;"

"Parkson Machine Tools committed financial fraud by recognizing revenue in advance across periods and inflating contract prices;"

"Hongbao Telecommunications Factory inflated its profits through self-dealing with related parties..."

Yang Mo pointed out all the companies that had been found to have problems, and then looked at You Yakun with a sad face: "Mayor You, the existence of these companies and the key evidence are all here. Deputy Director Geng is an expert and is more proficient in financial technology than I am... If you still have doubts, you might as well ask Deputy Director Geng for confirmation."

Upon hearing this, the middle-aged man surnamed Geng almost wanted to run away and was on the verge of crying.

Brother!

If you want to arm wrestle with Mayor You, just wrestle. Why involve me?

Have you ever looked at these enterprises? Which one is not supported by the city's plan? Which one is not supported by the city's policies? There are even two enterprises under provincial management.

Even if you are an outsider, you can tell how many human relationships and underwater causes and effects are involved.

There are so many almost irrefutable evidences in front of me, and you ask Mayor You to verify it with me, isn't that putting me on the fire?! ?
Fortunately, You Yakun's focus is not on whether these things are true or false;
After carefully opening the file bags tied with red lines one by one and scanning the thick stacks of bank transaction records, account opening information and various stub copies inside, he finally confirmed a fact.

A certain Liu, who is not very noticeable at ordinary times but is extremely important to Yang Mo as the bank president at this critical juncture, is indeed in cahoots with Yang Mo. Otherwise, under normal circumstances, a leader would never let his employees work overtime to dig out so much detailed information from the mountain of accounts in such a short time.

damn it!
Surprisingly, someone named Yang got there first.

Now things are getting troublesome!
………………

after an hour.

The general manager and party secretary of Dezhou Urban Property Fund respectfully escorted the leaders who came to inspect to the door.

When shaking hands and saying goodbye as usual, Yang Mo felt You Yakun's palm which was still full of strength but a little cold, and glanced at his eyes which hinted at a heavy heart on his gentle smiling face.

After thinking for a while, Yang Mo said softly: "Mayor You, I know that the surprise audit of the Urban Property Fund makes you very nervous, but please believe me... This surprise audit does not have any other purpose, and it won't be long before the city may usher in a wave of surprises."

After a slight pause, Yang Mo lowered his voice and said, "Of course, I also know that you may have some misunderstandings about me, and even some actions of the Urban Property Fund Company have disrupted some of your plans, but I believe... maybe two years, maybe three years, maybe ten years later, when you look back on the past, you may be glad that you met a troublemaker like me."

Hearing Yang Mo consciously calling himself a troublemaker, You Yakun immediately laughed: "Boss Yang, your analogy is very interesting! If this gets out, people will think that I, You, am petty and can't stand other different voices at work!"

Although he expressed his dissatisfaction slightly, the gloom in You Yakun's eyes was slightly alleviated.

This kind of vague goodwill was not the first time that Yang Mo had expressed it. A few years ago, when they were hanging out at the Urban Property Fund Company after drinking, Yang Mo also said something similar.

But later it turned out that I was overthinking it, as this guy was still extremely uncooperative in most of the subsequent work.

This made him really unsure of Yang Mo's true attitude.

After all, it stands to reason that although Yang Mo's position is not high, his weight is extremely important. People at his level are unlikely to send out clear signals casually... In fact, apart from being close to Ye Tao and acting very intimately, Yang Mo has always been impartial to other people in the Texas administrative system. Except for himself, he has never sent out any obvious signals to anyone else.

Therefore, he was really confused by the other party's ambiguous attitude.

But no matter what, he was parachuted in and has not yet established a firm foothold. Yang Mo is actually one of the biggest local tyrants in Texas. He has Dahua Company, Drilling Company, and even Dongying Command and other state-owned enterprises as his backers. As long as the two of them do not completely fall out, it will be a good thing for him.

Thinking of this, You Yakun's smile gradually became more friendly: "Originally, I was worried that the surprise audits of more than a dozen key enterprises would seriously hinder the city's economic development this year, but with your words, Mr. Yang, I feel relieved... Well, I'll just wait for the surprise in a few months!"

What he meant was that he would not interfere openly in the affairs of these companies, as long as Yang Mo did not go too far.

Of course, if DZ City fails to achieve its economic targets this year and someone brings up old issues again, then it’s no wonder that he will settle both old and new accounts.

Yang Mo looked at him with a smile and nodded gently: "Of course, as long as the city, especially Executive Ye, is willing to cooperate more... please wait and see!"

Executive Ye?
Is this guy warning me not to push Ye Tao too hard?

Have you crossed the line?!

As a cadre of a central enterprise, as the general manager of an urban property fund company and the operation manager of a large industrial fund, you should just focus on your plans of supporting and upgrading the industry. Why are you reaching out to others for no reason?
Aren't you afraid of getting beaten?

However, he quickly realized that although Yang Mo was not in the same system as him strictly speaking and he did not have the authority to interfere, he could still embarrass him in other ways!

Putting aside other things, if they just find a reason to arrange some support funds for other key enterprises in the city, will you accept it or not?
Isn't that nonsense? The economy has been so bad in the past two years, who would complain about having too much money?
Well, once you accept the industrial support funds from the Urban Development Fund Company, they will have the power of financial supervision. If that happens, they will give you a surprise audit like they do now, and make a big hole in the sky. Can you bear it?

You have to know that due to historical factors, there are many state-owned enterprises with irregular financial affairs. If you have some financial knowledge and the courage to check, you will definitely find the correct answer!

The first batch of companies that were found to have problems were already considered to have a fairly good level of accounting at the moment. Even they were thoroughly investigated by He Yongyi and his people in just a few days, let alone the rest of the companies?

Huh~
A large number of the city's key supported enterprises were found to have problems. Tian Guangyue, the squad leader, was not sure what would become of him. But You Yakun, the deputy squad leader in charge of the economy, can forget about his position... Don't tell me that you have just taken office and don't understand the situation of the city's enterprises. It is your job as the deputy squad leader to visit and understand each major enterprise, serve and manage them well, and create a thriving business environment. As long as Yang Mo manages his time well and starts taking action just six months after you took office, you won't be able to explain it even if you have ten mouths!

Realizing the ingenuity and unsolvable nature of Yang Mo's "startling the snake by stirring up trouble", You Yakun felt confused for a moment. He didn't know whether he should thank this guy for giving him an advance warning at this delicate juncture when he had just been in office for three months, or whether he should be angry at this bastard for threatening him with such a method that temporarily left him helpless.

But after all, they were all old demons in fox skins. You Yakun quickly calmed down and laughed: "Old Ye is an old Texas man. He knows all the situations here. Don't worry, Mr. Yang. Even if I have to fight, I will force him to come over to cooperate with your Urban Property Fund Company's follow-up work!"

(End of this chapter)