Originally, the land was industrial but was compensated as residential land. Due to the different nature of the land, more than 38 million yuan of state-owned assets were embezzled. In the Hunan-Guangxi Railway capacity expansion and reconstruction project, public officials colluded with the expropriated households to defraud high compensation. Liujiang County, Guangxi, recently investigated and dealt with this "nest case", involving nearly 50 million yuan, 24 people involved, including 17 public officials.

The Economic Information Daily reporter learned from an interview that in the "nest case" of the Hunan-Guangxi Railway capacity expansion and reconstruction project in Liujiang County, many cases took the form of "planting houses to obtain subsidies". The cost of each square meter of illegal construction is only a few hundred yuan, but thousands of yuan of compensation may be obtained during demolition. This is not an isolated case. In recent years, this phenomenon has existed in places where key projects involve land acquisition and demolition. Some staff members of the land acquisition and demolition department who hold the power to manage and allocate the state's land acquisition and demolition compensation funds took advantage of their positions, illegally reviewed and defrauded the state's land acquisition compensation funds by asking some expropriated households to forge materials, etc. The amount involved was hundreds of thousands or even tens of millions of yuan, resulting in a large loss of state-owned assets.

"Oolong" compensation of more than 38 million yuan

"The compensation standard for industrial land is 507 yuan per square meter, while the compensation standard for residential land is 2,140 yuan per square meter. This industrial land was compensated as residential land, resulting in a loss of more than 38.8 million yuan in state-owned assets." A case handler from the procuratorate told the Economic Information Daily reporter.

The procuratorate initially found that during the expansion and reconstruction of the Hunan-Guangxi Railway, the land of Liuzhou Huilifeng Silk Co., Ltd. located in the Second Industrial Park of Liujiang County was industrial land, while the land nature shown on its land use certificate was residential land. Because this mistake was not corrected in time, huge amounts of state-owned assets were embezzled.

The facts ascertained show that when Tan Langshan, director of the Liujiang County Land Acquisition and Demolition Office, concurrently served as deputy director of the Office of the Leading Group for Land Acquisition and Demolition for the Capacity Expansion and Reconstruction of the Liujiang Section of the Hunan-Guangxi Railway (hereinafter referred to as the ¡°Liujiang County Railway Office¡±), in the land acquisition and demolition work of the second and third industrial parks of the Liujiang section of the Hunan-Guangxi Railway, he did not strictly fulfill his review responsibilities in accordance with government documents for the land use rights materials submitted by Huilifeng Company, and did not carefully review and check them before signing as the reviewer. Wei Mouzhuan, a staff member of the Liujiang County Railway Office, did not carefully verify the relevant materials. Due to the dereliction of duty by Tan Langshan and Wei Mouzhuan, Huilifeng Company's 20,000 square meters of industrial land was compensated as residential land, allowing the company to obtain 115 million yuan in demolition compensation, of which 38.8654 million yuan was withdrawn in multiple accounts.

"According to the materials provided by Huilifeng, the company has 20,000 square meters of residential land in the industrial park, and residential land accounts for 80% of the company's total land area, which is obviously not in line with common sense. As a staff member of the land acquisition and demolition, they did not find the problem and signed and issued the compensation without retrieving the original land files for careful review." The case handler said.

Since the staff of the Land Bureau who handled the land use certificate with errors for Huilifeng has passed away, it is difficult for the case handlers to investigate whether there was any interest transfer in the certificate application process.

Recently, the Liubei District People's Court of Liuzhou City held an open trial of the case. Information revealed in the court showed that the procuratorate and the public security organs only recovered 15 million yuan of the huge amount of money that was embezzled, and more than 23 million yuan could not be recovered.

Public officials "planted houses and demolished them themselves"

According to an interview with the Economic Information Daily reporter, some "well-informed people" suddenly "planted houses" to obtain compensation based on the land acquisition and demolition information they learned in advance. Several officials of the Liujiang County Land and Resources Bureau illegally obtained land use certificates and rushed to build illegal buildings, embezzling more than 2 million yuan in demolition compensation.

On June 1, 2009, the Liujiang County Government, in accordance with the spirit of the documents on land acquisition and demolition of the Liujiang section of the Hunan-Guangxi Railway, issued a notice in the name of the Liujiang County Land and Resources Bureau and the Liujiang County Demolition Office: From the date of the announcement, no rush to plant or build within the red line of the land use, and no compensation will be given for any ground attachments and young crops planted or built after the announcement.

However, 10 days before the announcement was issued, Qin Dong, Zeng Chenyi (also deputy director of the Liujiang County "Railway Office"), an employee of the Liujiang County Land and Resources Bureau, and Yao Biao, a social worker, jointly invested to purchase a 247-square-meter piece of land from the Liujiang County Feed Machinery Factory, and signed an agreement and handled relevant procedures in the name of Qin Dong's wife Zeng. On the day of the purchase, Zeng submitted materials to the window of the Cadastral and Surveying Management Section of the Liujiang County Land and Resources Bureau to handle the land transfer change registration.

Ou Mouwu, the chief of the cadastral and surveying management section of the Liujiang County Land and Resources Bureau, instructed staff member Wei Haiyun to handle the matter quickly. Wei Mouyun made a notice of the transfer of state-owned land use rights for the land on the day of acceptance, even though Zeng Mou lacked relevant materials and did not meet the registration requirements. He then issued a land use certificate to Zeng Mou with a date of May 31, 2009.

After obtaining the illegally processed land use certificate, Qin Dong and others immediately rushed to build houses on the land, and colluded with Ou Xicai and Wei Jiguo, state employees in charge of land acquisition and demolition, and eventually illegally obtained 2.035 million yuan in house demolition funds.

"The smooth compensation for an illegal building that was rushed to be built is inseparable from the dereliction of duty of the state employees in charge of demolition." said the head of the Public Prosecution Section of the Liujiang County Procuratorate. Tan Jinlong, who was transferred to the Liujiang County "Iron Office" as the deputy head of the residential land acquisition and demolition team, was mainly responsible for the payment of land acquisition and demolition fees. When handling the demolition compensation procedures for Zeng Li, they did not conduct an on-site inspection of the house that Zeng Li had hastily built, but submitted the signed application materials to the leader for signature and compensation.

What surprised the case handlers was that the case caused huge losses to the country, and the Liujiang County People's Court recently ruled that Ou Mouwu and Wei Mouyun were "exempted from criminal punishment" for abusing their power.

"Virtual" houses can also be defrauded

The land and the house did not exist at all, but with only a set of completely false materials, 744,000 yuan in state compensation could be defrauded. Such a bizarre thing also happened in this "nest case" in Liujiang County.

The procuratorate found that Wei Mouzhuan, a staff member of the "Iron Office" of Liujiang County, did not seriously review the land acquisition and demolition compensation materials of the demolished household "Wang Ke", which resulted in "Wang Ke" defrauding the compensation by submitting false homestead ownership information.

"As long as we go to the site for an on-site inspection, we can completely avoid such a situation." The case handler said.

"Wang Ke" is the son of Wang Yunyou, a villager in Tangtou Village, Labao Town, Liujiang County, and Wang Yunyou is a "professional house grower". After Wang Yunyou learned about the reconstruction of the Hunan-Guangxi Railway, he rushed to build houses on two plots of land waiting for demolition. In November 2011, Wang Yunyou found Pan Suqing, a member of the demolition team, and asked for compensation for house demolition, and promised to give Pan Suqing benefits after the compensation was implemented. After accepting the request, Pan Suqing found Lao Jun and Tan Jinlong, staff members of the land and house acquisition team, to help Wang Yunyou with the demolition compensation. After receiving a total of more than 4 million yuan in demolition compensation, Wang Yunyou bribed Pan Suqing and others with 800,000 yuan. Recently, Wang Yunyou was sentenced to 6 years in prison by the Liujiang County People's Court for the crime of accepting bribes.

The procuratorial organs found that in this "nest case", there were many social personnel like Wang Yunyou who helped others "plant houses" during the demolition project, and colluded with public officials who had the power to distribute demolition compensation funds to embezzle demolition compensation.

"Planting houses" presents "corporate" operation

Due to the temptation of huge compensation, some "corporate" "planting house" professionals "bound interests" with villagers. "Almost overnight, a batch of houses were "planted", and the method was quite "professional." A cadre described it this way.

In the "nest case" of the Xianggui Railway capacity expansion and reconstruction project in Liujiang County, many cases adopted the form of "planting houses to obtain subsidies". The cost of each square meter of illegal construction is only a few hundred yuan, and thousands of yuan of compensation may be embezzled during demolition. And this is not an isolated case. As long as key projects involve land acquisition and demolition, this phenomenon exists.

After the news of the planning and construction of the "Baiyun Bridge" in Liuzhou City, Guangxi Province came out at the end of last year, dozens of illegal buildings suddenly appeared in Shewan Village on the outskirts of the city. The common features of these buildings are: huge size, five or six stories high, no decoration inside and outside, and many even have no doors and windows installed.

"These illegal buildings that were built in a rush will be forcibly demolished." Zeng Lingfang, deputy director of the Liudong Branch of the Liuzhou City Urban Management Administrative Law Enforcement Bureau, said that some villagers rented land to "companies" for "planting houses" in an attempt to obtain high compensation for demolition.

Some grassroots cadres told the Economic Information Daily reporter that illegal buildings may breed and spread wherever key projects are planned. These people believe that "planting houses" is far more profitable than growing crops.

In areas facing demolition due to key projects, some people are not rich, but they can "plant" thousands of square meters of illegal buildings in front of and behind their houses. In the road expansion project of Rongjun Road in Liuzhou City, a "house planting" contract revealed the secret: the "operator boss" first invested money to build houses for the demolished households, and after receiving the demolition compensation, the demolished households and the "operator boss" shared the profits.

"These people inquired about the locations of key engineering projects everywhere. Before we started construction, they were able to get the project coordinates and "planted" a batch of houses almost overnight. The method was quite "professional." A cadre described it this way.

"There are more or less shadows of "professional companies" behind these illegal buildings." Peng Pingyi, director of the Urban Management Administrative Law Enforcement Bureau of Chengzhong District, Liuzhou City, said. In addition, there are professional "Wild Horse Engineering Teams" that contract engineering construction, using single bricks and thin plates to build "buildings" that are not habitable at all, saving construction costs and increasing the speed of "house planting".

In order to obtain compensation for illegal buildings, bribery of public officials responsible for land acquisition and demolition often occurs. The emergence of professional "house planting" companies has increased the efforts to win over and corrupt public officials.

Land acquisition and demolition form a corruption interest chain

"The amount of compensation funds for land acquisition and demolition is huge, and it is fiscal funds at all levels. Like the "nest case" in Liujiang, the central fiscal funds used for railway construction, some people think it is a waste not to take it, and some cadres who have the power to allocate funds can hardly resist the temptation." The case handler said.

With the advancement of urbanization, corruption cases in the field of land acquisition and demolition have emerged in an endless stream. Since last year, Liuzhou City, Guangxi has stepped up its crackdown on corruption cases in the field of land acquisition and demolition, and a number of cases have been investigated and dealt with.

The Liuzhou Municipal Commission for Discipline Inspection reported in April this year that Hu Qizhong, the former captain of the patrol detachment of the Municipal Public Security Bureau, colluded and conspired with the staff of the Municipal Urban Investment, Construction and Development Co., Ltd. and idle people in society. After the demolition announcement of the Xi'e Road reconstruction project was issued, they took advantage of Lin's position in charge of the Xi'e Road demolition project and took measures such as rushing to build factories and expanding the compensation area to illegally defraud the state of more than 2.3 million yuan in land acquisition and demolition compensation; the Liuzhou Municipal Procuratorate reported on May 8 that Jiang Yong, director of the Liunan District Housing Acquisition and Compensation Office of Liuzhou City, took the method of buying a house in advance and falsely reporting the area to defraud compensation, and colluded with others to defraud 1.2 million yuan in demolition compensation. He has been arrested recently.

In order to successfully obtain compensation, some "house-growing professionals" wooed and corrupted cadres who held the management and allocation rights of land acquisition and demolition compensation funds. "Chen's Pharmacy" in Liujiang County built an additional pharmacy to obtain more demolition compensation. Tan Fangling, who also serves as the deputy director of the Liujiang County Railway Office, took advantage of his position and, after accepting a bribe of 20,000 yuan, facilitated the successful acquisition of land acquisition and demolition compensation for the additional construction of the pharmacy.

The Economic Information Daily reporter learned that during the capacity expansion and reconstruction of the Hunan-Guangxi Railway, a total of 17 cadres in Liujiang County were dismissed for abuse of power, embezzlement and bribery, with a case value of more than 48 million yuan, and the main personnel of the Liujiang County Railway Office were almost "annihilated". At present, the judicial authorities have sentenced 13 public officials, including 6 people sentenced to fixed-term imprisonment, 5 people sentenced to exemption from criminal punishment, and 2 people sentenced to suspended sentences are appealing.

¡°Looking at the series of corruption cases involving 18 cases and 24 people in Liujiang County¡¯s Iron Office, most of these people are superiors or subordinates, colleagues or relatives or friends; some follow the example of their superiors and are corrupt one after another; some form a community of interests with complicated relationships; some cross-commit crimes or commit crimes together. These cases are highly correlated, and often through the investigation of the bribers, multiple clues are discovered, forming a nest of cases or a series of cases.¡± A cadre involved in the case said that the case was exposed during the local investigation into the report that Zhou, the director of the Liuzhou Injection Molding Factory, and relevant personnel of the demolition unit were suspected of using virtual fraud to defraud the state of huge sums of money.

Analysis of the case revealed that the Liujiang County ¡°Railway Office¡± was a temporary institution. Among the 24 people involved in the case, there were public officials transferred from township governments, township middle schools, county-level departments and other institutions to the Liujiang ¡°Railway Office¡± to engage in land acquisition work, as well as public officials from important county departments such as construction and land. There were staff and intermediaries from demolition companies, as well as business owners and ordinary residents who were being relocated. The number of people involved in the case was large and their identities were diverse.

¡°Land acquisition and demolition work is generally time-sensitive and has heavy tasks. After the land acquisition work is completed, it will generally be demolished quickly, so the original appearance of the land no longer exists, the actual area of the land acquisition and the building area are difficult to verify, and the relevant information is difficult to find due to personnel changes, frequent changes, and no dedicated management.¡± The case handlers said that the staff responsible for land acquisition and demolition were familiar with the land acquisition and demolition policies, and they took advantage of their positions to collude with the relocated households and demolition companies to forge a complete set of procedures for materials such as illegal addition of floors to houses, redecoration of houses, illegal rush to build houses, and changes in the nature and use of the land. They turned a blind eye to the forgery by the relocated households and demolition companies, and the internal audit and approval became a formality.

Open and transparent operation is urgently needed

"In the process of land acquisition and demolition, the compensation prices vary greatly depending on the nature of the land; the compensation varies greatly depending on the structure and decoration of the house; if the demolished households actively cooperate with the demolition, the amount of reward they receive is also quite arbitrary. These objectively create a lot of room for rent-seeking in the field of land acquisition and demolition." The case handler of the procuratorial organ said.

The "Interim Measures for the Acquisition and Compensation of Houses on State-owned Land" and 7 supporting documents currently formulated by Liuzhou City are only applicable to the demolition of houses on state-owned land. The policies on the acquisition and demolition of collective land are relatively backward and there are many gaps. When formulating the compensation and resettlement policies and demolition procedures for collective land housing demolition, the municipal and county governments are mostly aimed at the scope and standards of compensation, but there are few provisions on responsibilities, procedures, supervision, etc., which leads to the imperfect and non-uniform working mechanisms of land acquisition and demolition in various counties and districts, leaving room for corruption.

Investigators believe that the main causes of dereliction of duty crimes in the field of land acquisition and demolition are: the laws and regulations on land acquisition and demolition are not sound, some of them are in conflict, and they have not been put on the track of rule of law; the compensation standards for demolition are not unified, and the current demolition problems are weak; there are many circulation links, complicated procedures, lack of publicity, and lack of supervision; there are loopholes in many links, and some management systems are lagging behind, which gives criminals opportunities to take advantage. Since it is difficult for a single person to complete the entire process of defrauding demolition compensation, such cases often involve a large number of people, involve huge losses of state-owned assets, and include various duty crimes such as embezzlement, bribery, and dereliction of duty.

Tight time and heavy land acquisition and demolition tasks are also the reasons why some demolition cadres neglect their duties. The reporter learned that the expansion and reconstruction of the Liujiang section of the Hunan-Guangxi Railway includes two projects, the Liunan Passenger Dedicated Line and the northern section of the Hunan-Guangxi Railway. The project requires the demolition of an area of 510,000 square meters, involving multiple townships and development zones. More than 90 enterprises and institutions and more than 1,000 households need to be relocated, and it is required to be completed within a time limit. As the leadership of the "Railway Office", it is difficult to carefully review every payment.

Qin Langshan, director of the Liujiang County Land Acquisition and Demolition Office, who was dismissed in the Liujiang "nest case", defended himself in court and said, "Since taking over the land acquisition and demolition work of the Hunan-Guangxi Railway, I have been working "five plus two and day and night". I can only trust my subordinates to review many tasks, and I have not been able to do it myself and review them one by one."

Grassroots cadres believe that the important means to fundamentally curb the problem of corruption in land acquisition and demolition is openness and transparency. Land acquisition and demolition should gradually improve and perfect the land price, resettlement method, compensation price standard, resettlement housing conditions, demolition rulings and other regulations, formulate implementation rules with unified compensation standards, detailed content and strong operability, and further standardize land acquisition and demolition work; according to the characteristics of the land acquisition and demolition field, further improve the work management system and demolition operation procedures, realize the systematization of system construction and standardization of operation, and plug the loopholes in fund management; in the process of land acquisition and demolition, the land acquisition and demolition compensation standards should be strictly followed and publicized to ensure transparent operation.

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