From: Contemporary Business News
Author: Tan Bangliang
Editor: Xu Xiaojun
Zhengzhou Mifeng Paper Industry Co., Ltd. is a private joint-stock enterprise. There is an abundant coal resource under the plant of the company, which has placed it at the centre of adversity. After Henan Provincial Government prevented the surrounding coal mines from illegally mining, a group of individuals plotted to take possession of the Mifeng company and usurp the power of the director. They yearned to take leadership and then realise their “ulterior motives”. On Sept. 2, 2008, Huang Liuyi, one of stockholders, convened a provisional general meeting, in which Yu Changfu (who is not a stockholder) was elected as director of the company. At around 5 am. on Sept. 6th, Yu Changfu led a group of people into the company to seize power of the company. This group attacked several employees. They were detained by public security organisations as a result of their actions. The “9.6” incident has perplexed company directors and is a heavy load to bear. In face of 2009, they are looking forward to develop with the support of justice.
Innocent Workers Asking for Wages in the Street
On Jan. 29 (Dec. 24 in Chinese lunar calendar), Chinese traditional secondary new year when people were busy with the preparation for the new year, Liu Hongchang, Sun Zuguo, Zhou Fulin, Zhang Ying, etc., the workers of Zhengzhou MifengPaper-making Co., Ltd. in Henan, were standing in bleak winds in front of the door of Shuanghui chain store on West Street in Xinmi City, to ask for their wages of Sept., 2008.
As a notable brand chain store, the first-rank enterprise image of Shuanghui has sunk deep into the hearts of the people, how can it default on workers’ wages? The employees at the site told the reporter that they did not ask for the wages from the Shuanghui chain store, but from Huang Liuyi, the principal of the store, who promised in public to provide them with wages in Sept. last year.
On Sept. 6 last year, Huang Liuyi, Yu Changfu, etc. put up a public notice in MifengPaper-making Co., Ltd., saying that the whole staff could take a holiday for one month and that they would be paid RMB 600 Yuan. They would return to the plant upon notification. They had one-month’s rest in line with the public notice but still have not received the wages promised by Huang Liuyi.
In the office of the chain store, Huang Liuyi was interviewed by the reporter. He said, “it is necessary to declare that Shuanghui never has and will not default on workers’ wages. These persons are deliberately provocative.” In accordance with Huang’s explanation, the individuals asking for wages are the staff of MifengPaper-making Co., Ltd. which was Xinmi Cigarette Paper Factory formerly, and reorganised as a private enterprise in 1997. Before 2000, Huang served as the Party Secretary of the company, who is one of the major shareholders now. Due to dissatisfaction of the operation and management in the company, he contacted 21 shareholders and convened a provisional general meeting in Sept. last year, in which a new board of directors was established and Yu Changfu was elected as the director. On Sept. 6, the board of directors was determined to provide a one-month holiday for the whole staff, and each staff could get RMB 600 Yuan during this period. However, Xu Keji, the former director, refused to co-operate, and fighting was brought about in the handover of power. As a result, the members of the new board of directors were injured, and Yu Changfu, the new elected director, was detained by public security organisations with respect to gathering to disturb the order of the organisation.It was thus impossible to make good on the promise regarding wages over the holiday period.
(In order to avoid further attacks, the gate of the company was locked and welded shut. Shot by reporter Tan Bangliang
How could the fighting occur during the handover? Why did the new board of directors provide a one-month holiday for the whole staff and stop the ongoing production prior to taking over the company completely? When the reporter prepared to interview Huang Liuyi with these questions in mind, the unexpected incident happened: Yu Changfu, Lu Junjian, etc. rushed into the office. After verifying the identity of the reporter, Yu Changfu took the reporter’s certification papers and interrupted the interview. After being persuaded by Huang Liuyi, Yu Changfu shook hands with the reporter and made an apology. Yu was extremely angry and full of hatred when thinking about the fighting during the handover. Elected as the director, Yu Changfu could not take up the position, and instead was fined and detained by public security organisations.
In line with the explanation of Yu Changfu, etc., after the election of new board of directors,the power of administration was not handed over due to Xu Keji’s non-cooperation . At around 5 am. on Sept. 6th last year, through negotiation of Yu Changfu, Yang Guozhen, Lu Junjian, etc., they drove from Xinmi City to Mifeng Paper Industry Co., Ltd. to reclaim the power of administration of the company. They were also accompanied by a group of people. At the company, the gatekeeper on duty was unwilling to open the gate and let them in. Under such circumstance, they had to climb over the walls and entered by force. After we climbed over the gate, the dare-to-die corps of Mifeng company attacked us with sticks, high-pressure water guns, dry powder fire extinguishers, etc., During this conflict, several people were injured. In end, we left the company because of anisations’ intervention.
With respect to this incident on the early morning of Sept. 6th, there was another interpretation from the staff of MifengPaper-Making Co., Ltd. In line with the explanation of workers, at around 5:20 am that day, Yu Changfu, Yang Guozhen and Lu Junjian led approximately 50 people, (10 of whom remain unidentified), with red bands on their arms and steel tubes, iron rods and daggers in their hands, to the front of the gate of MifengPaper-making Co., Ltd. with the intention of attacking the employees inside. They shouted loudly and requested that the gatekeeper on duty open the gate at once. After he refused, they were divided into three groups, one climbing over the gate, one picking the lock and another encouraging others in their activities. In order to prevent them from forcing their way into the company, the guards brought fire extinguishers and switched on the firefighting lance to defend the gate. Entering into the plant area, with daggers in their hands, Yu Changfu and others rushed towards the workers; meanwhile, the gate lock had been pried open, and Chen Jiwei, etc. entered the yard. Xu Jinshuan, the director of security dept. of the company, was violently attacked by five individuals commanded by Yu Changfu. After almost one-hour’s conflict, there was one worker with minor wounds and five workers with slight injuries.
Verification for Real Legal Person after Twists and Turns
In the first third of Sept., 2008, before revocation on the former board of directors of MifengPaper-making Co., Ltd., the new board launched formally in Xinghua hostel at Minkang Road in Xinmi City. As a private joint-stock enterprise, there were two boards of directors acting simultaneously. In this situation, who is the legal corporate representative? With this question in mind, the reporter interviewed relevant departments and persons. While being interviewed, Huang Liuyi said, “on Sept. 2 last year, the board of directors recently elected is legal, and the director of MifengPaper-making Co., Ltd. is Yu Changfu. The current operation of the company is managed by the former board of directors for Xu Keji is unwilling to hand over the power, but the new one still exists.
Xu Keji said in the interview, “an enterprise is not a mountain who have armed forces who can occupy it”. If they are legal, why did they handle relevant procedures in accordance with laws but led so many people to attack the company at around 5:20 am Providing workers with holiday for no apparent reason and halting production is destroying the enterprise. The ‘Sep.6th’ incident last year resulted in over RMB 6 million Yuan loss for the company.”
In order to verify the registered corporate representative of MifengPaper-making Co., Ltd., the reporter visited Xinmi State-owned Asset Management Company which is the responsible dept. of the company, and called on the principal director, Chen, to solve the question. His answer was surprising. When the reporter asked whether the production of MifengPaper-makingCo., Ltd. was normal, he answered “I have no idea”; when the reporter asked who the current registered corporate representative of the company was answered “I have no idea”; at last, the reporter asked, “if you are unaware of the incidents within the scope of your responsibility, what do you actually do in your position?” Director Chen answered, “(Xinmi) municipal committee and government told us early on that we shall not talk incessantly in interviews on relevant issues of MifengPaper-making Industry Co., Ltd. You’d better pay a visit to the Propaganda Deptartment of XinMi Chinese Comminst Party Comittee.
In the office of Propaganda Deptartment., after understanding the reporter’s purpose in coming, the section chief Wang of Press Section called up the office of State-owned Asset Management Company, and allowed them to introduce the actual situation for the reporter and asked director Chen to wait for a while in the office. However, about five minutes later, when the reporter came to the office of State-owned Asset Management Company, other staff told him that director Chen had left. The reporter came to realise that director Chen took the city leaders giving prior notice just as an excuse; as a matter of fact, he was full of contradictions for not only did not want to lie but he also worried about offending others if he told the truth. Thus he had to escape in face of unavoidable circumstance.
With respect to the two questions that director Chen of State-owned Asset Management Company avoided answering, the reporter came across the answers in Xinmi Industrial and Commercial Bureau. Wei Dewen, the deputy director general of the Bureau told the reporter that the current registered corporate representative of MifengPaper-making Co., Ltd. was Xu Keji. It is now clear which board of directors is legal and which one is not.
(The signboard on board of directors of MifengPaper-making Co., Ltd. was put up suddenly at the front of Huaxing hostel,Shot by reporter Tan Bangliang)
Concocting Board of Directors for other Intentions
An all-right enterprise, why was there such conflict? Why did Huang Liuyi, Yu Changfu, etc. try various devices to establish a new board of directors? The following interviews enabled the reporter to discover that the current situation of MifengPaper-making Co., Ltd. was not formed in a day. Moreover, Huang Liuyi, Yu Changfu, etc. had ulterior motives.
Located beside Western City Xiazhuang River in Xinmi City and established in 1983, the predecessor of MifengPaper-making Co., Ltd. was Cigarette Paper Factory, a professional factory which produced cigarette paper for state tobacco general company. The company has always been the first profit and tax provider for Xinmi City, whose economic benefit ranks the 26th among 100 best enterprises on paper. paper product manufacture nationwide and the 28th among 100 enterprises with optimum economic benefit in Henan Prov. In 1998, after Xu Keji (the present director) took power, he reorganised the company and renamed it as Zhengzhou MifengPaper-making Co., Ltd.
There are two coal mines named Xinmi Xinxing Coal Industry Co., Ltd. (Xinxing Coal Mine) and Xinmi Zhaigou Coal Mine in the vicinity of Mifeng Paper Industry Co., Ltd.In 2005, through insiders of MifengPaper-making Industry Co., Ltd., Xinxing Coal Mine invited Group one of Henan Coalfield Geology Bureau and Shaanxi Coalfield Geology Bureau Geophysical Prospecting Entity to enter the company yard for exploration and as a result, discovers that there is a large coal resource underground, reaching up to 7,790,000t. Its estimated value is over4 billion.Relevant stockholders of MifengPaper-making Co., Ltd. told the reporter that, in order to seize these interests, XX Coal Industry Co., Ltd. employed “relations” to submit Technical Reform Scheme of Xinxing Coal Industry Co., Ltd. in Zhengzhou City to relevant departments in May 2006.In the drawing up of the mining area, Xinxing Coal Industry Co., Ltd. included half of area of MifengPaper-making Co., Ltd. without notifying them. This was very selfish.
On May 30 2006, before being informed of all the facts, relevant departments of Henan Prov. entrusted Coal Bureau of Zhengzhou City to approve the scheme by ZMJS (2006) No. 12 Document. Since that time, the two enterprises have been in conflict. Dahe Daily on Nov. 20, 2008, reported that, on Nov.14, vice governor Shi Jichun (responsible for coal of Henan Prov.) investigated Xinmi City, issuing three coal mines to cease all production with immediate effect. . The two small coal mines in the vicinity of Mifeng Paper Industry Co., Ltd., Xinmi Jinchang-Coal-Industry Co., Ltd. and Xinmi Zhaigou Coal Mine were on the list. This only came about once an investigation had taken place. This illustrates that the coal mines near from MifengPaper-making Co., Ltd. had wielded great influence.
In line with the introduction of the principal of MifengPaper-making Co., Ltd., XX Coal Industry Co., Ltd. took advantage of Huang Liuyi, one of stockholders of MifengPaper-making Co., Ltd., and other intermediators, negotiating to sell the company to the coal mine. Huang advised to sell Mifeng Paper Industry Co., Ltd. with a hundred million assets to XX coal mine for RMB 35 million Yuan, which was refused by board of directors of the company. After the coal mine plan party failed, they became very embarrassed, and threatened to pursue and eventually murder the director of Mifeng Paper Industry Co., Ltd. and offered RMB10 million Yuan. Huang Liuyi also took the matter to heart, surreptitiously inciting Lu Junjian, Zhai Guoqian, Fan Xifa, etc. to make trouble for Mifeng Paper Industry Co., Ltd. Xu Keji said,Huang Liuyi, etc. schemed to destroy the company and its production, creating an illegal board of directors by vote. Yu Changfu, who is not a shareholder, has been elected as the director unexpectedly, which makes a joke of the interests of all shareholders and Company Law. Handling Results Bringing about Disputes; The lawless acts of these individuals brought about heavy loss for the development of MifengPaper-making Co., Ltd. After the occurrence of the Sep.6th incident last year, the company was forced to stop production for one month, causing RMB 6 million Yuan economic loss. However, such a grave incident only resulted in the detention of Yu Changfu and Lu Junjian, which was unsatisfying for company staff. Workers were alleged that they were too powerful and no one could punish them.
On Sept.6 2008, Yu Changfu, Lu Junjian, etc. rushed into MifengPaper-making Industry Co., Ltd. to attack employees. These actions led to five individuals suffering slight injury, one person suffering a minor wound,RMB 6 million Yuan economic loss for the company, and ceased production. The locals have much to say about the handling of the case. When the relevant government departments were informed of the situation, the principal of MifengPaper-making Co., Ltd. said that, before 9.6 incident, Huang Liuyi etc. spoke in public of their intention to use force.
On Sept. 5, MifengPaper-making Co., Ltd. submitted an urgent report on Huang, etc. detailing the Sep.6th attack to such departments as Xinmi Township Police Station, State-owned Asset Management Company, etc. However, they did not take it seriously. Despite the violence of the incident, the Xinmi Township Police Station did not handle it for over two months. Wanting justice, the injured workers appealed to the higher authorities on many occasions. After on-site inspection and a letter from Supreme People’s Procuratorate, on Nov. 8, Public Security Bureau of Xinmi City took the decision to fine and detain Yu Changfu and Lu Junjian etc for gathering to disturb the order of the organization
However, the employees of Mifeng Paper Industry Co., Ltd. were unsatisfied with the result, claiming that Yu Changfu, etc. bribed the relevant personnel in charge of the case. Huang Liuyi and Yu Changfu also refused to accept the result, maintaining that Xu Keji intentionally asked the higher leaders to pressure and bribe the local police so that the Public Security Bureau of Xinmi City had to punish them. In the interview, relevant leaders said, “Detaining Yu and Lu is absolutely right. Why were they not investigated regarding their criminal responsibility? MifengPaper-making Co., Ltd. may put forward the question. Because two main suspects have not appeared and much remains unverified, it is impossible to determine the nature of the case.
“The local police station is always purposefully protecting them. In fact, detaining Yu Changfu is just perfunctory to the higher leaders”, said company staff. In line with these views, the company was willing to spend money requesting the Public Security Bureau to offer a reward for a capture of other suspects. Although they promised to do this, no action was taken. In addition, Ma Quanxi, the former salesperson of the company, has embezzled public funds of over RMB 800,000 Yuan. The procuratorate traced him via the internet and captured him. They then handed the case to public security organisations. Nevertheless, at present, Ma Quanxi is brazenly supporting Huang Liuyi, Yu Changfu, etc. and is opposing the company. The local police station turned their back on the situation after staff reported the case. The reporter verified this in Anti-Corruption Bureau of Xinmi City; several years ago, Ma Quanxi was a suspect in a severe economic issue but managed to abscond to avoid punishment when the procuratorial organ placed the case in file. At last, for he is not a government official, the case was included in illegal embezzlement and was handed over to public security organisations.
Expecting Wholehearted Development without Interference.
The year 2008 was unlucky for MifengPaper-making Co., Ltd. The company experienced ice disaster, surrounding coal mines encroaching on its territory, the Sep.6th bloodshed incident etc. The vitality of the company was nearly lost, but the staff were still united in their struggle, achieving over 20 million of the output. Looking forward to 2009, the whole company is full of confidence and expectation.
In accordance with the introduction of the leaders at the decision-making level, the most serious problem the company faces at present is the surrounding environment and its stability. Although several coal mines in the vicinity have temporarily ceased production and the risk of them digging underneath the plant has been eliminated, individuals still take action here and there, intending to mine again after the incident has calmed down. This is due to the enormous profits of the coal mining industry. Xu Keji, the director of the company, said in the interview, “the higher leaders pay great attention to the issue, but the coal mines in the vicinity act as they wish or please under an umbrella of protection. In order to achieve their aims, they publicly employed the strength of mafia-style organisations in an attempt to bring down the MifengPaper-making Co., Ltd. XuKeji gave an example: before the large-scale mining of the surrounding coal mines, the principal of MifengPaper-making Co., Ltd. knew that Huang Liuyi (Yang Chunjie’s brother-in-law)was the chief of Coal Bureau, so he called on him for help. Huang asked Yang to dismantle the derrick the following day. However, after the derrick was set up for the second time, Huang began to help the coal mine. Over a year later, after Premier Wen Jiabao’s personal direction and three inquiries by the Secretary of CPC Henan Provincial Committee, the derrick was finally pulled down. Subsequently, the surrounding coal mines resorted to fraud to incite the major shareholder, Xinmi Zhaigou Coal Mine, to stay back more than 100 metres and to establish a new mineshaft. The mines carried on with their illegal activities underneath the MifengPaper-making Co., Ltd.
Zhang, an employee of MifengPaper-making Co., Ltd., wrote in the material submitted to relevant departments: In order to drive out MifengPaper-making Co., Ltd., Huang Liuyi organised Lu Junjian, Fan Xifa, etc to visit Xinmi,Zhengzhou Henan Province. and Beijing all the year round to make complaints against the company and defame its leaders. Fan Xifa was held in custody for violating Regulations of Trust Appeal. In 2006, Huang encouraged Chen Zhanguo who has been in prison to make continuous complaints about the company and the leaders. He forced Lu Junjian etc. to in pretending to be company employees and spread rumours in relevant government departments, saying that the company is going to shut down and that its leaders have violated constitutional laws. They also encouraged the cadres and other employees to acknowledge the situation and join in the riots. Liu Hongchang, said that if we fail to stop complaints made by those who detest work, the society will be in chaos. For personal interest, there’s nothing that Huang Liuyi won’t do. To achieve his aims, he tried to force the closure of the company through defamation of its leaders.
During reporter’s interview, Huang Liuyi had an inflexible attitude towards the problem of illegal mining. Huang Liuy said “The government pays much attention to this and prohibits them from mining. They cannot harm the interests of all the shareholders of MifengPaper-making Industry Co., Ltd. simply for their economic benefit.“Huang Liuyi told the reporter that there is coal underneath MifengPaper-making Industry Co., Ltd. Many people attempt to acquire the coal from the reserves. As a long-employed secretary and a major shareholder of the company, he is determined to protect the rights and interests of the company and the major shareholders. He will never let them go ahead and mine in that area.
After easing the concerns of illegal mining, the employees of MifengPaper-making Co., Ltd. have another concern; will another violent incident, similar to what occurred on Sept. 6, take place ? Yu Changfu and Lu Junjian have rushed into the company, smashed the equipment and injured the workers. The murderers havent been punished by law yet. The one who is responsible for these events is still at large. This situation will undoubtedly help to promote evil deeds. Therefore, all company employees are eagerly expecting public security organisations to increase their efforts to prevent this action, and abide by requirements of the ministry of public security to ascertain what really happened.
Personnel in charge of this newspaper will continue to follow the situation of illegal mining surrounding MifengPaper-making Co., Ltd. They will also look at the "Sep 6th" bloodshed incident, damage to production of the company,and the investigation into the embezzlement case of Ma etc.
How could the fighting occur during the handover? Why did the new board of directors provide a one-month holiday for the whole staff and stop the ongoing production prior to taking over the company completely? When the reporter prepared to interview Huang Liuyi with these questions in mind, the unexpected incident happened: Yu Changfu, Lu Junjian, etc. rushed into the office. After verifying the identity of the reporter, Yu Changfu took the reporter’s certification papers and interrupted the interview. After being persuaded by Huang Liuyi, Yu Changfu shook hands with the reporter and made an apology. Yu was extremely angry and full of hatred when thinking about the fighting during the handover. Elected as the director, Yu Changfu could not take up the position, and instead was fined and detained by public security organisations.
In line with the explanation of Yu Changfu, etc., after the election of new board of directors,the power of administration was not handed over due to Xu Keji’s non-cooperation . At around 5 am. on Sept. 6th last year, through negotiation of Yu Changfu, Yang Guozhen, Lu Junjian, etc., they drove from Xinmi City to Mifeng Paper Industry Co., Ltd. to reclaim the power of administration of the company. They were also accompanied by a group of people. At the company, the gatekeeper on duty was unwilling to open the gate and let them in. Under such circumstance, they had to climb over the walls and entered by force. After we climbed over the gate, the dare-to-die corps of Mifeng company attacked us with sticks, high-pressure water guns, dry powder fire extinguishers, etc., During this conflict, several people were injured. In end, we left the company because of anisations’ intervention.
With respect to this incident on the early morning of Sept. 6th, there was another interpretation from the staff of MifengPaper-Making Co., Ltd. In line with the explanation of workers, at around 5:20 am that day, Yu Changfu, Yang Guozhen and Lu Junjian led approximately 50 people, (10 of whom remain unidentified), with red bands on their arms and steel tubes, iron rods and daggers in their hands, to the front of the gate of MifengPaper-making Co., Ltd. with the intention of attacking the employees inside. They shouted loudly and requested that the gatekeeper on duty open the gate at once. After he refused, they were divided into three groups, one climbing over the gate, one picking the lock and another encouraging others in their activities. In order to prevent them from forcing their way into the company, the guards brought fire extinguishers and switched on the firefighting lance to defend the gate. Entering into the plant area, with daggers in their hands, Yu Changfu and others rushed towards the workers; meanwhile, the gate lock had been pried open, and Chen Jiwei, etc. entered the yard. Xu Jinshuan, the director of security dept. of the company, was violently attacked by five individuals commanded by Yu Changfu. After almost one-hour’s conflict, there was one worker with minor wounds and five workers with slight injuries.
Verification for Real Legal Person after Twists and Turns
In the first third of Sept., 2008, before revocation on the former board of directors of MifengPaper-making Co., Ltd., the new board launched formally in Xinghua hostel at Minkang Road in Xinmi City. As a private joint-stock enterprise, there were two boards of directors acting simultaneously. In this situation, who is the legal corporate representative? With this question in mind, the reporter interviewed relevant departments and persons. While being interviewed, Huang Liuyi said, “on Sept. 2 last year, the board of directors recently elected is legal, and the director of MifengPaper-making Co., Ltd. is Yu Changfu. The current operation of the company is managed by the former board of directors for Xu Keji is unwilling to hand over the power, but the new one still exists.
Xu Keji said in the interview, “an enterprise is not a mountain who have armed forces who can occupy it”. If they are legal, why did they handle relevant procedures in accordance with laws but led so many people to attack the company at around 5:20 am Providing workers with holiday for no apparent reason and halting production is destroying the enterprise. The ‘Sep.6th’ incident last year resulted in over RMB 6 million Yuan loss for the company.”
In order to verify the registered corporate representative of MifengPaper-making Co., Ltd., the reporter visited Xinmi State-owned Asset Management Company which is the responsible dept. of the company, and called on the principal director, Chen, to solve the question. His answer was surprising. When the reporter asked whether the production of MifengPaper-makingCo., Ltd. was normal, he answered “I have no idea”; when the reporter asked who the current registered corporate representative of the company was answered “I have no idea”; at last, the reporter asked, “if you are unaware of the incidents within the scope of your responsibility, what do you actually do in your position?” Director Chen answered, “(Xinmi) municipal committee and government told us early on that we shall not talk incessantly in interviews on relevant issues of MifengPaper-making Industry Co., Ltd. You’d better pay a visit to the Propaganda Deptartment of XinMi Chinese Comminst Party Comittee.
In the office of Propaganda Deptartment., after understanding the reporter’s purpose in coming, the section chief Wang of Press Section called up the office of State-owned Asset Management Company, and allowed them to introduce the actual situation for the reporter and asked director Chen to wait for a while in the office. However, about five minutes later, when the reporter came to the office of State-owned Asset Management Company, other staff told him that director Chen had left. The reporter came to realise that director Chen took the city leaders giving prior notice just as an excuse; as a matter of fact, he was full of contradictions for not only did not want to lie but he also worried about offending others if he told the truth. Thus he had to escape in face of unavoidable circumstance.
With respect to the two questions that director Chen of State-owned Asset Management Company avoided answering, the reporter came across the answers in Xinmi Industrial and Commercial Bureau. Wei Dewen, the deputy director general of the Bureau told the reporter that the current registered corporate representative of MifengPaper-making Co., Ltd. was Xu Keji. It is now clear which board of directors is legal and which one is not.
Concocting Board of Directors for other Intentions
An all-right enterprise, why was there such conflict? Why did Huang Liuyi, Yu Changfu, etc. try various devices to establish a new board of directors? The following interviews enabled the reporter to discover that the current situation of MifengPaper-making Co., Ltd. was not formed in a day. Moreover, Huang Liuyi, Yu Changfu, etc. had ulterior motives.
Located beside Western City Xiazhuang River in Xinmi City and established in 1983, the predecessor of MifengPaper-making Co., Ltd. was Cigarette Paper Factory, a professional factory which produced cigarette paper for state tobacco general company. The company has always been the first profit and tax provider for Xinmi City, whose economic benefit ranks the 26th among 100 best enterprises on paper. paper product manufacture nationwide and the 28th among 100 enterprises with optimum economic benefit in Henan Prov. In 1998, after Xu Keji (the present director) took power, he reorganised the company and renamed it as Zhengzhou MifengPaper-making Co., Ltd.
There are two coal mines named Xinmi Xinxing Coal Industry Co., Ltd. (Xinxing Coal Mine) and Xinmi Zhaigou Coal Mine in the vicinity of Mifeng Paper Industry Co., Ltd.In 2005, through insiders of MifengPaper-making Industry Co., Ltd., Xinxing Coal Mine invited Group one of Henan Coalfield Geology Bureau and Shaanxi Coalfield Geology Bureau Geophysical Prospecting Entity to enter the company yard for exploration and as a result, discovers that there is a large coal resource underground, reaching up to 7,790,000t. Its estimated value is over4 billion.Relevant stockholders of MifengPaper-making Co., Ltd. told the reporter that, in order to seize these interests, XX Coal Industry Co., Ltd. employed “relations” to submit Technical Reform Scheme of Xinxing Coal Industry Co., Ltd. in Zhengzhou City to relevant departments in May 2006.In the drawing up of the mining area, Xinxing Coal Industry Co., Ltd. included half of area of MifengPaper-making Co., Ltd. without notifying them. This was very selfish.
On May 30 2006, before being informed of all the facts, relevant departments of Henan Prov. entrusted Coal Bureau of Zhengzhou City to approve the scheme by ZMJS (2006) No. 12 Document. Since that time, the two enterprises have been in conflict. Dahe Daily on Nov. 20, 2008, reported that, on Nov.14, vice governor Shi Jichun (responsible for coal of Henan Prov.) investigated Xinmi City, issuing three coal mines to cease all production with immediate effect. . The two small coal mines in the vicinity of Mifeng Paper Industry Co., Ltd., Xinmi Jinchang-Coal-Industry Co., Ltd. and Xinmi Zhaigou Coal Mine were on the list. This only came about once an investigation had taken place. This illustrates that the coal mines near from MifengPaper-making Co., Ltd. had wielded great influence.
In line with the introduction of the principal of MifengPaper-making Co., Ltd., XX Coal Industry Co., Ltd. took advantage of Huang Liuyi, one of stockholders of MifengPaper-making Co., Ltd., and other intermediators, negotiating to sell the company to the coal mine. Huang advised to sell Mifeng Paper Industry Co., Ltd. with a hundred million assets to XX coal mine for RMB 35 million Yuan, which was refused by board of directors of the company. After the coal mine plan party failed, they became very embarrassed, and threatened to pursue and eventually murder the director of Mifeng Paper Industry Co., Ltd. and offered RMB10 million Yuan. Huang Liuyi also took the matter to heart, surreptitiously inciting Lu Junjian, Zhai Guoqian, Fan Xifa, etc. to make trouble for Mifeng Paper Industry Co., Ltd. Xu Keji said,Huang Liuyi, etc. schemed to destroy the company and its production, creating an illegal board of directors by vote. Yu Changfu, who is not a shareholder, has been elected as the director unexpectedly, which makes a joke of the interests of all shareholders and Company Law. Handling Results Bringing about Disputes; The lawless acts of these individuals brought about heavy loss for the development of MifengPaper-making Co., Ltd. After the occurrence of the Sep.6th incident last year, the company was forced to stop production for one month, causing RMB 6 million Yuan economic loss. However, such a grave incident only resulted in the detention of Yu Changfu and Lu Junjian, which was unsatisfying for company staff. Workers were alleged that they were too powerful and no one could punish them.
On Sept.6 2008, Yu Changfu, Lu Junjian, etc. rushed into MifengPaper-making Industry Co., Ltd. to attack employees. These actions led to five individuals suffering slight injury, one person suffering a minor wound,RMB 6 million Yuan economic loss for the company, and ceased production. The locals have much to say about the handling of the case. When the relevant government departments were informed of the situation, the principal of MifengPaper-making Co., Ltd. said that, before 9.6 incident, Huang Liuyi etc. spoke in public of their intention to use force.
On Sept. 5, MifengPaper-making Co., Ltd. submitted an urgent report on Huang, etc. detailing the Sep.6th attack to such departments as Xinmi Township Police Station, State-owned Asset Management Company, etc. However, they did not take it seriously. Despite the violence of the incident, the Xinmi Township Police Station did not handle it for over two months. Wanting justice, the injured workers appealed to the higher authorities on many occasions. After on-site inspection and a letter from Supreme People’s Procuratorate, on Nov. 8, Public Security Bureau of Xinmi City took the decision to fine and detain Yu Changfu and Lu Junjian etc for gathering to disturb the order of the organization
However, the employees of Mifeng Paper Industry Co., Ltd. were unsatisfied with the result, claiming that Yu Changfu, etc. bribed the relevant personnel in charge of the case. Huang Liuyi and Yu Changfu also refused to accept the result, maintaining that Xu Keji intentionally asked the higher leaders to pressure and bribe the local police so that the Public Security Bureau of Xinmi City had to punish them. In the interview, relevant leaders said, “Detaining Yu and Lu is absolutely right. Why were they not investigated regarding their criminal responsibility? MifengPaper-making Co., Ltd. may put forward the question. Because two main suspects have not appeared and much remains unverified, it is impossible to determine the nature of the case.
“The local police station is always purposefully protecting them. In fact, detaining Yu Changfu is just perfunctory to the higher leaders”, said company staff. In line with these views, the company was willing to spend money requesting the Public Security Bureau to offer a reward for a capture of other suspects. Although they promised to do this, no action was taken. In addition, Ma Quanxi, the former salesperson of the company, has embezzled public funds of over RMB 800,000 Yuan. The procuratorate traced him via the internet and captured him. They then handed the case to public security organisations. Nevertheless, at present, Ma Quanxi is brazenly supporting Huang Liuyi, Yu Changfu, etc. and is opposing the company. The local police station turned their back on the situation after staff reported the case. The reporter verified this in Anti-Corruption Bureau of Xinmi City; several years ago, Ma Quanxi was a suspect in a severe economic issue but managed to abscond to avoid punishment when the procuratorial organ placed the case in file. At last, for he is not a government official, the case was included in illegal embezzlement and was handed over to public security organisations.
Expecting Wholehearted Development without Interference.
The year 2008 was unlucky for MifengPaper-making Co., Ltd. The company experienced ice disaster, surrounding coal mines encroaching on its territory, the Sep.6th bloodshed incident etc. The vitality of the company was nearly lost, but the staff were still united in their struggle, achieving over 20 million of the output. Looking forward to 2009, the whole company is full of confidence and expectation.
In accordance with the introduction of the leaders at the decision-making level, the most serious problem the company faces at present is the surrounding environment and its stability. Although several coal mines in the vicinity have temporarily ceased production and the risk of them digging underneath the plant has been eliminated, individuals still take action here and there, intending to mine again after the incident has calmed down. This is due to the enormous profits of the coal mining industry. Xu Keji, the director of the company, said in the interview, “the higher leaders pay great attention to the issue, but the coal mines in the vicinity act as they wish or please under an umbrella of protection. In order to achieve their aims, they publicly employed the strength of mafia-style organisations in an attempt to bring down the MifengPaper-making Co., Ltd. XuKeji gave an example: before the large-scale mining of the surrounding coal mines, the principal of MifengPaper-making Co., Ltd. knew that Huang Liuyi (Yang Chunjie’s brother-in-law)was the chief of Coal Bureau, so he called on him for help. Huang asked Yang to dismantle the derrick the following day. However, after the derrick was set up for the second time, Huang began to help the coal mine. Over a year later, after Premier Wen Jiabao’s personal direction and three inquiries by the Secretary of CPC Henan Provincial Committee, the derrick was finally pulled down. Subsequently, the surrounding coal mines resorted to fraud to incite the major shareholder, Xinmi Zhaigou Coal Mine, to stay back more than 100 metres and to establish a new mineshaft. The mines carried on with their illegal activities underneath the MifengPaper-making Co., Ltd.
Zhang, an employee of MifengPaper-making Co., Ltd., wrote in the material submitted to relevant departments: In order to drive out MifengPaper-making Co., Ltd., Huang Liuyi organised Lu Junjian, Fan Xifa, etc to visit Xinmi,Zhengzhou Henan Province. and Beijing all the year round to make complaints against the company and defame its leaders. Fan Xifa was held in custody for violating Regulations of Trust Appeal. In 2006, Huang encouraged Chen Zhanguo who has been in prison to make continuous complaints about the company and the leaders. He forced Lu Junjian etc. to in pretending to be company employees and spread rumours in relevant government departments, saying that the company is going to shut down and that its leaders have violated constitutional laws. They also encouraged the cadres and other employees to acknowledge the situation and join in the riots. Liu Hongchang, said that if we fail to stop complaints made by those who detest work, the society will be in chaos. For personal interest, there’s nothing that Huang Liuyi won’t do. To achieve his aims, he tried to force the closure of the company through defamation of its leaders.
During reporter’s interview, Huang Liuyi had an inflexible attitude towards the problem of illegal mining. Huang Liuy said “The government pays much attention to this and prohibits them from mining. They cannot harm the interests of all the shareholders of MifengPaper-making Industry Co., Ltd. simply for their economic benefit.“Huang Liuyi told the reporter that there is coal underneath MifengPaper-making Industry Co., Ltd. Many people attempt to acquire the coal from the reserves. As a long-employed secretary and a major shareholder of the company, he is determined to protect the rights and interests of the company and the major shareholders. He will never let them go ahead and mine in that area.
After easing the concerns of illegal mining, the employees of MifengPaper-making Co., Ltd. have another concern; will another violent incident, similar to what occurred on Sept. 6, take place ? Yu Changfu and Lu Junjian have rushed into the company, smashed the equipment and injured the workers. The murderers havent been punished by law yet. The one who is responsible for these events is still at large. This situation will undoubtedly help to promote evil deeds. Therefore, all company employees are eagerly expecting public security organisations to increase their efforts to prevent this action, and abide by requirements of the ministry of public security to ascertain what really happened.
Personnel in charge of this newspaper will continue to follow the situation of illegal mining surrounding MifengPaper-making Co., Ltd. They will also look at the "Sep 6th" bloodshed incident, damage to production of the company,and the investigation into the embezzlement case of Ma etc.
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