China Unicom's mixed-change suspension was the worst performance fraud in history

China Unicom held the 2016 Annual General Meeting of Shareholders in Shenzhen on May 9, 2017, and has approved the company's stock to remain suspended for 2 months from May 16, 2017. There have been rumors that China Unicom's mixed-reform plan, China Unicom's shareholding in China Unicom will change from 63% to 36%, three technology giants Baidu, Ali, Tencent (hereinafter referred to as BAT) will hold 20%, still It is said that CITIC Group and China Radio and Television have been introduced.

However, the performance fraud incidents that were called “unseen in history” by China Unicom were exploding during the suspension of trading.

According to the news, on May 17, a content of China Unicom's internal report on the performance of the Shaanxi branch of the company (hereinafter referred to as “Shaanxi Unicom”) was circulated on the Internet. The report mentioned that since 2012, many municipal-level branches of Shaanxi Unicom have used virtual cash payment methods to inflate their income through various means under the guidance of unrealistic high indicators, and illegally accounted for the collection, and The accounting for the formation of violations is reversed by various means, resulting in a large number of false income, false profits and false assets. From 2012 to 2016, the Shaanxi Branch of the Shaanxi Branch, except for Xi'an, had carried out performance fraud, which was huge and of poor quality, which seriously tarnished the corporate culture.

The above-mentioned online communication also mentioned that Xie Guoqing, the secretary of the Party Committee and General Manager of Shaanxi Unicom, was in default and was responsible for the above-mentioned large-scale performance fraud; the main branches of Yulin, Tongchuan and Hanzhong The person in charge and the main person in charge of Shaanxi Unicom's Finance Department, Marketing Department, Information Technology Division, Legal and Risk Management Department, and Audit Division are directly responsible for performance fraud.

From the source, the authenticity of the above notification was confirmed. It is understood that Unicom's internal fraud on Shaanxi Unicom has been processed, and the relevant responsible person has already received the punishment. The former general manager of Shaanxi Unicom Xie Guoqing has left the Unicom Group.

According to the content of the notification, the problem of system performance fraud in Shaanxi Unicom, "the nature of its bad, serious consequences, has not been in the history of China Unicom." There were 73 cadres who were dealt with this time, including 1 second-level leader and 34 third-level leaders.

On May 18, the share price of China Unicom Hong Kong listed company (00762.HK) fell sharply by 3.21% to close at HK$10.24. At present, China Unicom's A-share listed companies are still in suspension.

China Unicom's mixed-change suspension was the worst performance fraud in history

Organized fraud for 5 years

According to the internal communication of China Unicom, the performance fraud of Shaanxi Unicom's multiple city branches was organized.

The process is generally: according to the decision of the main person in charge of the city branch, the business department determines the amount of false income according to the gap between the actual completion of the month's income and the income budget, and the main responsible person of the city branch agrees. Relevant departments cooperate with each other. The marketing department and the informationization department violate the regulations to increase the income through various means. The financial department violates the regulations and handles the arbitrarily listed accounts receivable, resulting in a large amount of false income, false profits and false assets.

The amount of fraud is huge. According to the report, Guo Yufeng, the former principal of the Tongchuan Branch of Shaanxi Unicom, has been performing fraud since 2011. When Ma Yuxi was the principal in charge of Tongchuan City and Yulin City Branch, the false income exceeded the 9 branches of the city. 17% of the total false income; during the period of the main person in charge of Hanzhong City Branch, the proportion of false income to the main business income of the same period exceeded 1/3.

According to the analysis of the report, there are four main reasons for the occurrence of the performance fraud incident in Shaanxi Unicom:

First, the main responsibility is not implemented. In a relatively long period of time, the former main person in charge of Shaanxi Branch, one-sided emphasis on business development, not to grasp the party style and style, and not to implement supervision and management responsibilities, is the leading cause of the occurrence and spread of performance fraud.

The second is the performance outlook and the distortion of values. The original principals and some leaders of Shaanxi Branch ignored the objective laws, blindly pursued high growth, and introduced unrealistic budget indicators and assessment methods, which are important incentives for large-scale performance fraud. Some leaders of the provincial and municipal branches have made great contributions. In order to pursue personal honors and local interests, the party rules and regulations have been ignored. What red lights are dare to succumb, and eventually develop to the point of organized fraud and widespread spread.

The third is the internal control failure. In a few years, the relevant functional departments of the provincial branches, especially the financial departments, gave up their supervisory duties, abandoned the principle of work, and did not comment on the violations of disciplines and violations of the municipal branches, and did not deal with them. Some people know that the problem is serious but they do not care about it or even cover it. Some acquiescence and connivance of performance fraud make this serious problem long-term and widespread in the province.

Fourth, supervision and control are weak. The problem of large-scale performance fraud in many city branches in Shaanxi Province, and the supervision of “disordering” by discipline inspection agencies at all levels is also an important cause.

The scale of fraud that lasts so long, the impact is self-evident.

According to the report, China Unicom believes that this kind of organized and large-scale performance fraud has caused serious harm to the development of enterprises, the style of the party, and the governance of the enterprise. Specifically, it seriously affects the healthy development of enterprises. Performance fraud masks the real situation of production and management, and misleads the judgment of the overall situation of production and operation. Seriously polluting the political ecology of enterprises, some cadres have obtained unsuccessful honours, interests and rewards by virtue of their false performances. Therefore, within a certain scope, they have formed a counter-removal and ecological treatment for those who are guilty of falsification and those who suffer hard.

73 cadres were processed

In this fraudulent incident, 73 cadres were dealt with.

Specifically, when he was appointed as the party secretary and general manager of Shaanxi Branch, Xie Guoqing, he was seriously warned and detained, and he was relieved of his position as general manager of the customer division of Unicom Group Corporation. In addition, 34 leaders of Shaanxi Branch were given disciplinary, disciplinary and organizational treatments: Among them, Ma Yuzhen, Party Secretary and General Manager of Yulin Branch, Guo Yufeng, General Secretary of Tongchuan Branch, and Hanzhong Branch The party secretary, general manager Fang and other three people were inspected for one year by the party, and the administrative dismissal and termination of the labor contract.

Mr. Wen Changshan, Party Secretary and General Manager of Baoji Branch, Yang Fan, Party Secretary and General Manager of Weinan Branch, Zhang Dapeng, Party Secretary and General Manager of Tongchuan Branch, Party Secretary and General Manager of Yan'an Branch, Sheng Xiaotong, Party Committee of Xianyang Branch Secretary, general manager Jia Junjun, deputy secretary and general manager of Ankang Branch, Xiao Wenhui, and former party secretary and general manager Bai Zhiqian of Weinan Branch, former party secretary and general manager of Yan'an Branch, Jin Weiming, Baoji Branch Wang Jian, deputy secretary of the Party Committee and deputy general manager, presided over the work. The former party secretary and general manager of Yangzhong Branch, Li Yang, and other 10 people were seriously warned and detained, and deducted 6 months of performance salary; given to Xianyang Branch The original manager of the marketing department, Huang Dong, was seriously warned and detained.

According to the report, it is not easy to organize and train a cadre. In the case of a provincial branch, it is very sad that such a large number of cadres have a large-scale violation of discipline.

The circular also stated that resolute and serious handling of performance fraud has reflected the firm stance and clear attitude of China Unicom's management in the face of right and wrong, principles, reflecting the value objectives pursued by management, and reflecting that management is not bright on China Unicom. The outlook is full of confidence and confidence.

Fu Liang, an independent telecommunications analyst, said that it is very difficult for operators to monitor the income of their branches.

Further reading: Beijing Unicom cancels roaming fee fiber users free of charge in advance

Beijing Unicom announced on May 17 that from September 1st, all domestic long-distance fees and domestic roaming charges will be cancelled. This is one month earlier than the timetables previously released by the three major operators.

Beijing Unicom announced the six major measures of “speeding up and reducing fees” on the same day. On September 1, Beijing Unicom will also reduce the international roaming charges of 22 countries along the “Belt and Road” and launch the package in 43 countries. The data charges of 53 countries are less than 5 yuan per megabyte.

In terms of speed increase, Beijing Unicom users below 100M fiber users free speed up to 100M, 100M mentioned 200M, 200M mentioned 500M, basically achieve full network optical broadband users 100 megabytes start, and the corresponding tariffs down one file.

At present, some cities in China are implementing “Gigabit broadband” coverage. Beijing Unicom will promote Beijing's “Gigabit Network” program. The fixed broadband network has Gigabit access capability, focusing on solving the fiber coverage of commercial buildings, entrepreneurial parks and residential communities where enterprises and public users gather.

In the past few years, Beijing Unicom has vigorously promoted the construction of the optical network Beijing plan and the 4G network, and has accelerated the broadband for five consecutive times. At the end of 2016, Beijing Unicom completed the optical network Beijing project, with more than 90% of households above 50M, and realized broadband comprehensive cost and cost-effective improvement through free speed increase and free value-added services such as IPTV.

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