“Some things are too inappropriate. It’s really inappropriate.” China Citic Bank Corporation Limited(601998) sun Deshun, former deputy secretary of the Party committee and President, sighed in front of the camera, “I’m still greedy and I have special regret. No matter how much regret, there’s no regret medicine.”
On the evening of January 18, the fourth episode of “systematic governance” of “zero tolerance”, a TV feature film jointly produced by the Publicity Department of the Central Commission for Discipline Inspection and the State Supervision Commission and the Central Radio and Television Corporation, was broadcast. In the program, the details of sun Deshun’s crime were exposed.
Sun Deshun was China Citic Bank Corporation Limited(601998) former deputy secretary of the Party committee and president. In March 2020, the State Supervision Commission of the Central Commission for Discipline Inspection informed that sun Deshun was a typical example of particularly serious corruption in the financial field, particularly bad in nature and huge in amount. He was expelled from the party and transferred to the procuratorial organ for examination and prosecution in accordance with the law.
It is reported that sun Deshun has worked in the banking industry for more than 40 years. He is the only cadre in China’s financial sector who has grown step by step into the president of the head office of state-owned banks starting from the counter teller at the most grass-roots level of bank outlets.
“First of all, he seriously violated the political discipline. As the head of an important state-owned commercial bank, he should have undertaken the political mission and social responsibility, but he ignored the major decisions and arrangements of the central government and just went to pursue his so-called performance and realize the interests of some bosses.” Fan Xiangpeng, a staff member of the Central Commission for Discipline Inspection and the State Supervision Commission, said in the program.
loan tendency real estate risk
The program points out that in recent years, the central government has repeatedly stressed that finance should return to the origin of serving the real economy, increase support for the manufacturing industry, and prevent excessive concentration of credit funds to real estate, but Sun Deshun went the opposite way.
Fan Xiangpeng said: “he focuses on what makes money quickly and gets results quickly. He tends to lend to real estate. When presiding over the president’s office meeting, he openly and directly asked that the whole bank must stop the manufacturing loan immediately, even if you have 100% mortgage.”
According to Liu Cheng, deputy secretary of the Party committee of China Citic Bank Corporation Limited(601998) , during this period, the loan structure of China Citic Bank Corporation Limited(601998) changed. On the one hand, the growth rate of real estate loans reached more than 40%. At that time, the pressure drop of manufacturing loans reached more than 30%, so his influence was very obvious.
China Citic Bank Corporation Limited(601998) the problem that the proportion of loans to the real estate industry was too high brought about the long-term risk gradually appeared later. In February 2020, the CBRC issued a huge administrative penalty ticket of 22 million yuan to China Citic Bank Corporation Limited(601998) , and 13 of the 19 penalties involved real estate business.
carefully designed to cover up power money transactions
The program pointed out that in addition to pursuing political achievements, another secret reason why Sun Deshun increased real estate loans is to seek personal interests. The investigation found that the bosses of some real estate companies had a close relationship with him and there was an exchange of interests.
The program also said, for example, that the boss of a real estate company had delivered 10 million yuan to the company actually controlled by sun Deshun in the name of investment, and the return was more than 4 billion yuan of loan credit approved by sun Deshun.
“One of his characteristics is that he doesn’t accept cash. He thinks that receiving cash is too low-end, too simple and rough. The way he cashes in his interests is very professional, and he has made layers of cover up, that is, he has set up a lot of firewalls, walked around a lot of circles, and used unique financial means and products to cover up.” Fan Xiangpeng said.
Sun Deshun said, “because I got up from the grass-roots level and have strong business ability, I always feel that my business ability is there, which creates a fluke mentality.”
The survey found that sun Deshun is a typical example of using “shadow company” and financial means to complete benefit transmission, and its degree of specialization and complexity is quite rare. He arranged two old subordinates as agents and opened two investment platform companies. The so-called legal persons in the front desk of the two companies are actually just the “shadow” of sun Deshun.
The person in charge of the platform company controlled by sun Deshun said warmly: “I am a voice at the front desk, and there is only one person behind me, sun Deshun. In fact, he decides the salary of our main managers and the core business decisions of the company. He also decides the details of how to allocate the corresponding share.”
The program points out that on the one hand, sun Deshun is China Citic Bank Corporation Limited(601998) using public power to approve loans for enterprise bosses; Correspondingly, some of these bosses inject huge amounts of money into the platform companies they actually control in the name of investment, while others send high-quality investment projects or investment opportunities; Platform companies use the funds provided by these bosses to invest in the projects provided by those bosses, make money with money, make profits and dividends together with the bosses, and form a community of interests.
In addition, sun Deshun designed many bunkers with extremely complex structure. The two platform companies are his core management teams and the first “shadow” hidden in front of him; More than a dozen project companies have been established under the platform company as the second layer of “shadow”. The project company and bribery enterprises are not directly traded, but both sides have established shell companies as the third layer of “shadow”, and multi-layer shadow companies are nested layer by layer. The transaction subject itself has been full of ghosts, and the capital transactions are disguised as various seemingly legitimate financial products and equity investment agreements, which use “shadow trading” to transport interests.
use credit approval power for private
The program points out that these blindfolded methods have brought great difficulties to the investigation. After research, the task force decided not to go around in the shadow, but to start from the source, sort out the loan credit promoted by sun Deshun in China Citic Bank Corporation Limited(601998) , find out the obvious abnormal decision-making matters, and then investigate the relationship between the enterprise that obtained the loan and sun Deshun. This investigation strategy focuses on the core of sun Deshun’s corruption problem, that is, using the power of credit approval for personal gain.
According to fan Xiangpeng, at the end of 2014, an energy company applied to China Citic Bank Corporation Limited(601998) for a loan. Because the energy company has a debt crisis, it is a highly indebted enterprise and generally cannot issue loans. However, with sun Deshun’s intervention, the 4 billion loan was granted to enterprises, which soon formed non-performing assets. In order to express his gratitude to sun Deshun, the actual controller of the company signed a capital increase agreement with the platform company controlled by sun Deshun and completed the transfer of interests.
Through the so-called equity investment agreement, the energy enterprise actually made a profit of 100 million for the company controlled by sun Deshun. There are many power and money transactions like this. There are various packaging methods for enterprises to deliver benefits to sun Deshun, but the things they exchange are the same, that is, bank loans. If we grasp this core, the ghosts will dissipate rapidly, and the actual controller will develop clearly.
The program pointed out that sun Deshun’s case highlights the importance of controlling the key power of credit examination and approval. Bank loan approval is generally submitted by loan customers to submit application materials and submit them for approval level by level according to the procedures. However, sun Deshun often connects directly with enterprises and assigns them to subordinates to do, and operates in violation of regulations in the way of program inversion.
According to the system design of China Citic Bank Corporation Limited(601998) , the president has only one veto over credit approval, but no approval power; The approval must be approved by a collective vote of the credit approval meeting, and the main leaders must speak at the bottom. But in fact, sun Deshun often ignored these systems and directly intervened in credit approval. The bank’s internal control mechanism lost its role in front of the power of the “top leader”.
It is reported that in view of the problems exposed in sun Deshun’s case, the Central Commission for Discipline Inspection and the State Supervision Commission promoted China Citic Bank Corporation Limited(601998) to systematically promote reform with cases. First, it corrected the corporate governance structure, strengthened the responsibilities of the board of directors, the board of supervisors and the senior management, determined their relationship of mutual restriction and mutual supervision, and promoted the reform of credit system, risk management system and approval system, Strengthen the accountability mechanism, improve the corporate governance system and improve the governance ability.
