Absolute power in officialdom

Chapter 338 The waters of Qingyan County are too deep and too murky.

Wu Zhiyuan frowned.

Fraudulent practices in attracting investment are not unique to Qingyan County; they are a widespread phenomenon.

The city and the county knew, but for the sake of assessments and political achievements, they pretended not to know and even condoned the falsification.

However, Wu Zhiyuan was still surprised by how serious the counterfeiting problem was in Qingyan County.

Han Jie continued, "This is just a minor issue. The bigger problem is the invoicing economy, which is illegal taxation."

What is "invoicing economy"? It refers to the practice in some townships of registering shell companies in order to meet their fiscal revenue targets.

These companies do not actually operate in Qingyan, do not create jobs, and do not generate any value other than tax revenue; they simply issue invoices and pay taxes here.

Townships give them tax rebates and financial subsidies, which on the surface increases fiscal revenue, but in reality the government doesn't get much money and instead loses a lot of subsidies.

Zhiyuan, do you know what's the scariest thing?

What's most frightening isn't these phenomena themselves, but that they've become the norm, the unspoken rules, something everyone tacitly understands and takes for granted.

When superiors come to inspect, everyone is happy, only reporting good news and not bad.

Did the inspectors not know? Some didn't know, and some knew but turned a blind eye.

Falsifying data year after year, getting away with it year after year—who would be willing to genuinely attract investment? It's so comfortable to lie on these fabricated figures and sleep soundly.

The result? The result is that the real business environment is getting worse and worse.

When genuine investors and businesspeople arrive, they find that corrupt officials are more numerous than flies, demanding bribes and favors. One day this department comes to inspect, the next day that department comes to collect fees, and the day after that someone hints at wanting kickbacks. Who would dare to come then?

Han Jie became increasingly angry as he spoke: "Some cadres treat enterprises like Tang Monk's flesh, and they won't stop until they get a bite."

Project approval requires kickbacks;

Land quotas, they want benefits;

Environmental and safety assessments are for personal gain;

Law enforcement inspections are conducted with the intention of extracting benefits.

Businesses dare not speak out against their anger; they either swallow their anger or pack their bags and leave.

Over time, Qingyan's reputation was ruined.

Outsiders all know that Qingyan is a deep and difficult place, with complex relationships.

Good companies don't dare to come; what kind of companies are coming?

They're either here to scam subsidies, or to exploit loopholes, or they're inherently corrupt and not afraid of causing trouble.

Can a company like this drive development? It'll be good enough if it doesn't lead Qingyan astray.

Wu Zhiyuan was shocked by what he heard.

The problems in Qingyan County are far more complex and serious than those in Qingshan County.

No wonder Qingyan County, despite its advantageous location, has long suffered from economic stagnation; the root cause has rotted to this extent!

Some officials have resorted to fraudulent practices in attracting investment, showing that their minds are not on development at all, but rather on using their power as a tool for personal gain and treating the market as their own hunting ground.

This isn't a service company; it's clearly a hunting company!

With such a poor business environment, even the best location and the most favorable policies are just a mirage.

Wu Zhiyuan's expression was grave: "Director Han, I've taken note of what you've said. Qingyan's problem is more complex than I imagined."

Han Jie smiled wryly and said, "Zhiyuan, I'm not trying to scare you, and I'm certainly not telling you to flip the table as soon as you take office."

These deep-seated problems didn't form overnight, nor can they be resolved overnight.

Wu Zhiyuan nodded. Although he already had the answer in his heart, he couldn't help but ask, "Director Han, is the city aware of these circumstances?"

Han Jie smiled meaningfully and asked in return, "What do you think?"

Wu Zhiyuan smiled as well.

Of course the city knows. With annual assessments and reports, how could the relevant departments not know whether the figures are true or false?

But why didn't anyone expose it? Because if it were exposed, there would be accountability, people would be punished, and the lid would have to be lifted.

When the lid is lifted, the stench comes out, and it doesn't look good on anyone.

There are some things that we don't not know, but rather we pretend not to know.

As long as nothing serious happens, as long as no one complains, and as long as we can still get away with it, we'll continue to do it.

This is a survival wisdom found in many places.

"It takes more than one cold day for the ice to freeze three feet deep," Wu Zhiyuan remarked.

He originally thought that the problems in Qingyan County were unclear development strategies and a lack of unity within the leadership team, but now it seems that the problems are far more than that.

"Director Han, I have noted down everything you said."

This is not just an economic issue for a county, but also a political issue.

If we don't make the firm decision to undergo radical reform, Qingyan will have no future.

I'm not here to be a maintenance chairman, nor am I here to lie down and sleep on false numbers.

This boil will burst sooner or later.

Han Jie said seriously, "Zhiyuan, it's good that you have this determination."

But let me remind you, popping a boil will cause pus to drain, blood to flow, pain to occur, and may invite retaliation from some people.

You're new here and your foundation isn't solid, so you need to be especially careful.

I suggest you focus on thorough research and investigation in the early stages to fully understand the situation and avoid going into battle unprepared.

Wu Zhiyuan said gratefully, "Thank you for the reminder, Director Han. I will start with in-depth research to understand the situation first, and then look for a breakthrough when the opportunity arises."

He suddenly remembered that Liu Mingda, the director of the county construction bureau, had been reprimanded by Yuan Jin, and that the Jinxiu Jiayuan resettlement housing project had not yet started, so he asked about it.

As expected, Han Jie knew something about the Jinxiu Jiayuan resettlement housing issue because the county people's congress had inspected it.

"Zhiyuan, Jinxiu Jiayuan is the largest shantytown renovation and resettlement project in the county, involving more than 600 households to be relocated."

When the project was approved, it was said that it would be built into a model project for the whole county and a project that would win the hearts of the people.

And the result? Instead of a model project, it became a failed, unfinished project.

Wu Zhiyuan asked, "Where did the problem lie?"

Han Jie said, "Not following the rules and doing whatever one pleases will leave lasting consequences."

Don't even mention replacing Liu Mingda; replacing the entire Construction Bureau from top to bottom wouldn't make a difference.

Because this isn't something Liu Mingda, or rather, it's not something the Construction Bureau can decide.

Han Jie sat down again and continued, "The land of Jinxiu Jiayuan used to belong to the county's wind turbine factory."

The wind turbine factory went bankrupt and closed down more than a decade ago. Workers were laid off, and the factory site was abandoned.

In order to improve the image of the urban area, the county decided to demolish the wind turbine factory along with several old and dilapidated neighborhoods and build resettlement housing and some commercial housing in its place.

The initial plan was quite good: the government allocated land, brought in developers, resettled the relocated residents on their original sites, and even built some commercial and public facilities to revitalize that barren land.

The developer of this project is called Jiangzhou Hongtai Real Estate Company.

It's said that the introduction of this company was due to a suggestion from a city leader, and Secretary Yuan personally made the final decision.

Wu Zhiyuan asked, "Wasn't a bidding process followed back then?"

Han Jie said, "They left, but it was just a formality."

Hongtai Company found several companies to bid for the project, and easily won the bid.

The problem is that Hongtai Company itself is not strong enough. It has less than 30 million yuan in cash on hand, but it is going to undertake a project with a total investment of more than 200 million yuan.

Why? Because they have powerful backers, because they can get government approvals and projects first to secure bank loans, and because they get the green light all the way when applying for loans.

Shortly after the project started, most of the bank loans obtained by Hongtai Company were misappropriated by the company for other purposes, and the company failed in investing in other projects, resulting in the collapse of the company's capital chain.

The project was halted as soon as the foundation was laid. And it remained halted for two years.

The residents whose homes were demolished are waiting to move into their new homes, and they've been waiting for two years.

They tried everything: petitioning, blocking doors, hanging banners.

The county was anxious, but what good was their anxiety? The boss of Hongtai Company had absconded, leaving the company a mere shell. There was no money in the accounts, the banks wouldn't lend, and when they tried to find another company to take over, no one wanted to touch this mess.

Wu Zhiyuan asked, "Director Han, hasn't the county tried anything these past two years?"

Han Jie smiled wryly and said, "I've thought of several plans. One is to let Hengyuan go bankrupt and liquidate, and then start attracting new investors, but that involves complicated legal procedures."

Moreover, what happens to the original resettlement agreements for the relocated households after the liquidation is completed?

Re-sign? That would cost extra money, where would we get the money?

Secondly, the county took over, but the finances were already tight, so how could they afford to take over?

Thirdly, they could find other developers to take over, but those developers have done the math: completing the unfinished building, plus the initial debt and subsequent infrastructure costs, would definitely result in a loss. Who would be willing to be taken advantage of?

Wu Zhiyuan said, "The issues involved are too complex, including legal matters, funding, planning, and the emotions of those being relocated. It's really unfair to blame the construction bureau."

Han Jie nodded and said meaningfully, "Zhiyuan, I'm telling you this not so that you'll take on this hot potato right away."

On the contrary, I'm reminding you that you shouldn't get involved in the Jinxiu Jiayuan scam for now.

Wu Zhiyuan asked, puzzled, "What does Director Han mean?"

Han Jie smiled sadly: "Zhiyuan, don't misunderstand, I'm not telling you to ignore the people's suffering."

Rather, this matter involves too many things behind it, not just Hongtai Company, but also the person who made the decision in the first place, and all the messy invitations, hints, and exchanges of benefits in the subsequent handling process.

The water is too murky. You're new here and can't see the bottom. If you step in rashly, you'll easily sink.

Han Jie lowered his voice: "You think Liu Mingda was scolded because Jinxiu Jiayuan didn't do a good job?"

Secretary Yuan reprimanded him because a few days ago, Liu Mingda was in charge of approving a project in the bureau, but he didn't follow the instructions from above.

As for who made the contact, you can guess without me saying.

The "Magnificent Home" project was just a pretext; the real story is another matter entirely.

Wu Zhiyuan said with concern, "Director Han, I understand what you mean."

Since I'm new here, it's really not appropriate for me to meddle in such complicated legacy issues.

But dragging this out isn't a solution either.

More than 600 households have been waiting for two years. If this drags on any longer, what if something happens...?

Han Jie sighed: "Yes, I'm worried about this too."

When the county people's congress organized its representatives to inspect the area, an elderly man grabbed my hand and cried, asking if he would ever be able to live in a new house again in his lifetime. Listening to him, I felt a pang of sadness.

Zhiyuan, you respect this old man and came to see me on your first day in office, so I'll tell you everything I know. I'm telling you this so that you'll understand.

Many problems in Qingyan County, while seemingly specific, are actually rooted in issues of people, social atmosphere, and the political environment. Jinxiu Jiayuan is just one example.

Han Jie paused for a moment, then said solemnly, "Zhiyuan, the problems of Jinxiu Jiayuan must be resolved."

However, the way to solve the problem requires attention to timing, strategy, and degree of urgency.

What you need to do now is not to stir up this hornet's nest, but to first thoroughly understand the situation in the whole county, get to know all the people, and unite those who really want to do things and are capable of doing things.

Once you've established yourself in Qingyan, built your own team, and gained the confidence to speak up, dealing with these tough nuts will be much easier.

Wu Zhiyuan said gratefully, "Director Han, thank you for your guidance. I will calm down, conduct research first, and then take action."

Han Jie patted Wu Zhiyuan on the shoulder: "Come to me anytime if you need anything. This old man may not be good at much else, but I can still give you some advice and suggestions."

Wu Zhiyuan walked out of Han Jie's office with a heavy heart.

The waters of Qingyan County were deeper and more murky than he had imagined.