Accused of "cheating 250 million yuan in fiscal subsidies", Guangdong Mingjie Chairman accepted an exclusive interview yesterday

"Subsidy funds have not been used, and the online post does not conform to the facts"

The day before yesterday, "Nanfang Daily" reported that "Foshan environmental protection enterprises were exposed to have cheated 250 million yuan in fiscal subsidies", which subsequently attracted attention from all parties. Yesterday, Wu Yanhong, chairman of Guangdong Mingjie Environmental Protection Technology Co., Ltd. (hereinafter referred to as "Guangdong Mingjie"), accepted an exclusive interview with "Nanfang Daily" and responded to the issues involved in the online report one by one. Wu Yanhong also showed the reporter the balance statement of Nanhai Rural Commercial Bank. The statement shows that as of April 30 this year, the balance of the special account for national fiscal subsidies was 125.29 million yuan, and the subsidy money has not been used.

The above-mentioned company's official website posted a statement yesterday saying that the online report "does not conform to the facts" and "welcomes media supervision."

Two subsidiaries are operating normally

Yesterday, the reporter visited Guangdong Mingjie's two companies located in Danzao, Nanhai, Guangdong Yingjia Environmental Protection Technology Co., Ltd. and Guangdong Yingjia Resource Development and Utilization Co., Ltd. (as shown on the right, photographed by Sheng Zhengting).

The former is located in the northern corner of the Nanhai National Ecological Industrial Park, and trucks marked with "Mingjie Renewable Resources Recycling" come in and out from time to time. The reporter entered the second floor and saw several offices with staff busy. There are foreigners in the company, who are said to be "German experts in charge of remanufacturing research", and the company has a "German R&D technical team".

Wu Yanhong's office is spacious, but the bookcase behind the desk is empty except for the plaque of "Vice President Unit". "I usually don't work here, and sometimes I come and leave after a meeting, so the office is relatively simple." Wu Yanhong said.

Behind the office building are several production workshops of the company. Accompanied by Wu Yanhong and several persons in charge of the company, the reporter wore a safety helmet and a disinfection mask and visited one of them.

The workshop has a professional refrigerator dismantling equipment and three production lines. In the refrigerator dismantling area, four or five workers sent the initially dismantled refrigerators into the dismantling equipment. After automatic dismantling, foam, aluminum, plastic, iron and other fragments were output from the other end. On another production line, more than 10 workers were manually dismantling old TV sets. The two middle production lines were suspended because the surveillance cameras were under repair.

The latter is located on the west side of Hegui Road, Danzao, several kilometers away from the former. The company is surrounded by wasteland covered with weeds. This company covering an area of 107 acres is part of the national "urban mineral" base declared by Guangdong Mingjie.

The base consists of several office buildings, production workshops, hazardous waste warehouses and crushing centers. Among them, the workshop dedicated to dismantling old cars has been installed with dismantling equipment and large crushers, and it is reported that it will be put into operation as soon as possible. A large amount of recycled resources such as waste plastics are stored in some workshops. In the open space within the base, recycled resources such as used televisions are piled up like mountains.

The steps of the office building near the factory gate are still made of blue bricks and cement, and the floor tiles have not yet been laid. "This building is still under renovation and will be put into use soon." said a company employee.

The company displays a number of national patents

According to the "Notice on the Construction of Urban Mineral Demonstration Bases" issued by the National Development and Reform Commission and the Ministry of Finance, units applying for "urban mineral" bases must meet the conditions of "leading processing and utilization technology in China". Does Guangdong Mingjie meet the requirements?

According to the Guangdong Mingjie website, it was established in 1998. The company's main business includes recycling, processing, reuse, remanufacturing, sales, development and utilization of new materials, investment and management of renewable resources industry, and currently has 25 subsidiaries.

"Our current business is mainly concentrated in home appliances, automobiles, and industrial solid waste (recycling). We have signed industrial solid waste contracts with many large companies. Whirlpool, Haitian, etc. have contracts with us." Wu Yanhong said that the company's business was mostly overseas before, and it is gradually shifting its focus to China.

"We are now a demonstration of the country's circular economy, and many technologies are at the international leading level. For example, large automobile crushers are imported and fully automated." Yesterday, Wu Yanhong showed reporters more than ten patent certificates of her department. The reporter found that most of the patent projects are dismantling and sorting devices for waste electrical appliances and automobiles.

In addition, according to the list of China's top 500 private foreign trade enterprises in 2012 published online, Foshan Mingjie Import and Export Trading Co., Ltd., a subsidiary of Guangdong Mingjie, had a total import and export volume of US$620 million in 2011, ranking 68th among China's top 500 private foreign trade enterprises in 2012. At the same time, Guangdong Mingjie is also a member of Foshan's listing reserve team.

The day before yesterday, the government department of Nanhai District, Foshan City, also said in an interview with the People's Daily reporter that the content reported in the online post was inconsistent with the actual situation of the enterprise.

Question & Response

Falsely reported the park land

The reporter said that Guangdong Mingjie falsely reported the base of Guangdong Winner Resource Development and Utilization Co., Ltd., which only had 107 acres of land, as 1,170 acres of park land indicators.

107 acres is part of the project land

Wu Yanhong said that the "Urban Minerals" demonstration base project application plan will reach a land area of 1,170 acres and a processing capacity of 1.3 million tons after all sub-projects are completed within five years. The 107 acres of land is part of this project. Other construction land and sub-projects will be gradually promoted and implemented by governments at all levels in provinces, cities and districts.

Fraudulent financial subsidies

The whistleblower claimed that Guangdong Mingjie used its subsidiary Guangdong Winner Resource Development and Utilization Co., Ltd. to defraud the state financial subsidies, causing "taxpayers' money to flow into private pockets."

Financial subsidies have not been used so far

Wu Yanhong said that after the "urban mineral" demonstration base project was approved, the central government first allocated 50% (i.e. 125 million) to the local finance to support the start of the project. The 125 million yuan subsidy was managed by the local finance in accordance with the relevant special fund management methods, and reviewed and re-allocated according to the project implementation progress. Guangdong Mingjie has not used the above subsidy funds so far.

The company did not pay taxes

The whistleblower claimed that Guangdong Mingjie "did not operate at all in Foshan and did not pay taxes."

Taxes paid in excess of 10 million yuan in 2009

Wu Yanhong said that she has been committed to developing the circular economy since 1998. Due to business development, she has established several companies under her umbrella. These companies are actually operating enterprises, each with different scales and development priorities. In 2009, several of her companies were already major taxpayers in Nanhai District, and relevant government documents were published and praised.

On the first floor of Guangdong Yingjia Environmental Protection Technology Co., Ltd., the reporter saw that in January 2009, the company was awarded the plaque of "Foshan City's Enterprise with Tax Payments of Over 10 Million Yuan".

Identity Doubt

"Wu Jing is just a nickname"

After the report was spread online, the identity of the company's chairman also attracted public attention. Whether the chairman is "Wu Jing" or "Wu Yanhong" has aroused speculation among netizens. Yesterday, Wu Yanhong said, "Wu Jing is just my nickname."

Guangdong Mingjie's website shows that the company's chairman is named Wu Jing, with a photo attached; in January this year, Wu Jing was also elected as a member of the Guangdong Provincial Committee of the Chinese People's Political Consultative Conference. In a program on Nanhai TV in March this year, the invited guest looked very similar to the chairman announced on the website, and his position was also the chairman of the group and a member of the Provincial Committee of the Chinese People's Political Consultative Conference, but his name was Wu Yanhong.

Wu Yanhong said in an interview that Wu Jing is a nickname. "I just think A Jing sounds better, and I like to hear people call me that. The information on the website is an oversight."

"The name on my ID card is "Wu Yanhong", and I have not purchased any property or opened any company under the name of "Wu Jing". You can check, and I am willing to take responsibility if you find it." Wu Yanhong said that the place where the ID card was issued was "Nanhai, Foshan".

"In addition to subsidies, what we want more is the industry development policy." Wu Yanhong said that although the recycling industry is jokingly called "rag pickers", "China's resources are getting less and less, and more than half of our resources come from imports, so China should have more companies to recycle various resources."

She admitted that in recent years, environmental protection companies have been increasingly respected, which not only reflects the vitality of the industry, but also reflects the reality of the decreasing international resources.

Term explanation

Urban minerals

Since 2009, China has implemented the "Circular Economy Promotion Law". In May of the following year, the National Development and Reform Commission and the Ministry of Finance issued the "Notice on the Construction of Urban Mineral Demonstration Bases", stating that in order to implement the "Circular Economy Promotion Law" and promote the development of resource recycling industry, it was announced that it had decided to organize the construction of "urban mineral" demonstration bases.

"Urban minerals" is a figurative metaphor for the large-scale development of waste resource recycling. According to the above-mentioned "Notice", "urban minerals" refer to recyclable resources such as steel that are generated and stored in waste electromechanical equipment, wires and cables, communication tools, automobiles, home appliances, electronic products, metal and plastic packaging, and waste materials during the process of industrialization and urbanization, and their utilization is equivalent to that of primary mineral resources.

In addition to cultivating new economic growth points, the "urban mineral" demonstration base is also expected to ease resource bottleneck constraints, reduce environmental pollution, and develop a circular economy. At that time, the two ministries proposed that they planned to build 30 demonstration bases in China through five years of efforts.

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