Sinograin reported for illegally importing genetically modified rapeseed oil mixed into national temporary reserves
According to a report by The Paper, Sinograin Hunan Company was reported for causing 30 million yuan to be intercepted due to illegal operations, and multiple enterprises it entrusted were accused of using a “stand-in” method to import genetically modified rapeseed oil and earn huge profits from it.
The following is the detailed content:
After being exposed two years ago for imported genetically modified rapeseed oil flowing into a subordinate state reserve depot, and not long ago for the incident of using old grain to replace new grain, a subsidiary of Sinograin was once again reported for causing a large amount of funds to be intercepted due to illegal operations, and multiple enterprises it entrusted were accused of using a “stand-in” method to import genetically modified rapeseed oil and earn huge profits from it.
Peng Qinglan, an employee of the former Xiaogang Grain Depot in Yueyang, Hunan (now Sinograin Yueyang Xiaogang Directly Subordinate Depot), reported for 4 consecutive years that a subsidiary of Sinograin, during market-support purchases, colluded with entrusted enterprises in falsification, purchased large quantities of genetically modified rapeseed oil, and used a “stand-in” method to let it flow into the national temporary reserve depot.
Peng Qinglan reported that during the 2014 collection and storage process, Sinograin Hunan Company illegally paid 60 million yuan in rapeseed purchase funds that were originally meant for farmers to the entrusted enterprise Yueyang Yongsheng Oil and Fat Chemical Co., Ltd., resulting in about 30 million yuan being intercepted.
In response to Peng Qinglan's report, on May 15, Sinograin's head office replied to The Paper's interview by email, saying that the violation case of the entrusted enterprise Yongsheng Oil Company reported by the whistleblower had been handled in 2014, all involved funds had been recovered, and the public security organ had opened a case for investigation. At the same time, it instructed Hunan Company to seriously deal with the relevant personnel responsible for supervision.
However, Sinograin's head office did not comment on Peng Qinglan's report that imported genetically modified rapeseed oil was mixed into the national temporary reserve depot. Yet public reports show that in 2013, Sinograin was exposed for imported genetically modified rapeseed oil flowing into state reserve depots. At that time, two entrusted enterprises in Hubei and Hunan illegally mixed 1,477 tons of imported rapeseed oil into temporary reserve stocks. Among them, Hunan Baling Oil Company, an enterprise entrusted by Sinograin that Peng Qinglan reported, was later confirmed to have imported genetically modified rapeseed oil.
Entrusted enterprise accused of fraudulently obtaining 30 million yuan, Sinograin reports to police
For 4 years, Peng Qinglan has been collecting evidence and reporting that Sinograin caused a large amount of funds to be intercepted due to illegal operations, involving 30 million yuan.
Multiple informed sources at Sinograin Hunan Company confirmed to The Paper that Bai Xiong, legal representative of the involved enterprise Yongsheng Oil Company, was detained by the public security organ in April this year and was approved for arrest by the procuratorate around May 8. At that time, Ma Yijun, director of the Changsha Rice Mill of Sinograin Hunan Company, who was responsible for on-site supervision of Yongsheng Oil Company's rapeseed market-support purchases, was dismissed as a result, and another 4 related personnel were dealt with.
On May 10, an insider at Sinograin Yueyang Xiaogang Directly Subordinate Depot told The Paper that in 2014, the purchase task Yongsheng Oil Company received from Sinograin's market-support program was 11,900 tons of rapeseed, equivalent to 4,000 tons of processed rapeseed oil. But Yongsheng Oil Company delivered only 2,000 tons of rapeseed oil to the national temporary reserve depot, yet received 60 million yuan in purchase funds from the Agricultural Development Bank through Sinograin, of which 30 million yuan was intercepted.
According to an analyst in China's grain and oil industry, under the 2014 rapeseed market-support purchase policy, purchase funds were directly “issued to cards” for farmers. No matter how much rapeseed farmers or vendors delivered, the Agricultural Development Bank of China directly transferred the purchase funds into farmers' bank accounts, and entrusted purchasing enterprises could not access the purchase funds. Sinograin only signed contracts with entrusted enterprises and paid processing and storage fees.
In the 2014 rapeseed market-support purchase task, the collection and storage company under Sinograin Hunan Company was responsible for collection and storage supervision, and after collection and storage ended, it handed the supervision accounts to the subordinate directly subordinate depot for custody and supervision. At that time, “Yongsheng Oil Company only completed the collection of more than 6,000 tons of rapeseed, but the books showed 11,900 tons.” the aforementioned insider revealed.
On May 15, Sinograin's head office confirmed the “Yongsheng Oil Company violation case” to The Paper by email, and said all involved funds had been recovered. “As the injured party, Sinograin Hunan Company reported the violation problem of Yongsheng Oil Company to the public security organ as soon as it was discovered last year, and the public security organ has opened a case for investigation.”
Sinograin's head office said that in accordance with relevant national policies and regulations, at the end of last year it removed Yongsheng Oil Company's rapeseed oil from the national temporary reserve stocks, placed it on the blacklist of national policy-based purchasing enterprises, and recovered its illegal gains. At the same time, it had earlier instructed Hunan Company to seriously deal with the relevant personnel responsible for supervision.
A person close to a national ministry told The Paper that after Sinograin's genetically modified “storm” in 2013, management was strict during the 2014 rapeseed market-support purchase process, and no violations were found. However, market-support purchases had many abuses in implementation, and “the state is also very troubled,” and the policy may be adjusted this year, though it has not yet been determined.
Central Grain Reserve Yueyang Xiaogang Directly Subordinate Depot
“Genetically modified” doubts
On May 11, in the vast farmland along the shores of Dongting Lake in Yueyang City, besides golden wheat and harvested rice stubble, there were also patches of rapeseed waiting to be harvested. Rapeseed bolts and flowers in late March each year, begins setting seed in April, and gradually enters the harvest period in late May.
At this time, in Junshan District, one of Yueyang City's main rapeseed production areas, many farmers had already begun harvesting scattered yellowing mature rapeseed. According to past convention, in about another 20 days, the state will release this year's market-support purchase plan. However, farmers here feel the market-support purchase policy is “too far” from them. Farmers' rapeseed is mostly purchased by vendors at low prices and then resold.
As a large central state-owned enterprise, Sinograin has grain and oil strategic reserve depots in various places to regulate the grain and oil market. Sinograin's head office official website shows that the company is a large important state-owned backbone enterprise approved by the State Council for establishment and involving national security and the lifelines of the national economy. It is entrusted by the State Council to specifically handle the operation and management of central reserve grain and oil, and at the same time accepts state entrustment to carry out regulatory tasks such as grain and oil purchase, sale, transfer and storage.
In 2008, affected by the international financial crisis, domestic and international rapeseed and rapeseed oil prices plummeted. To protect farmers' interests and stabilize edible oil market supply and prices, the state implemented rapeseed market-support purchases. So-called market-support purchases mean the state sets the purchase price, and Sinograin entrusts oil processing enterprises to openly post prices and purchase farmers' rapeseed. Enterprises process the purchased rapeseed into rapeseed oil (national standard grade four), transfer it into national temporary reserve inventory for storage, and the state finances give enterprises a processing subsidy of 220 yuan per ton and a certain storage subsidy.
According to relevant national regulations, it is strictly prohibited to transfer from existing old oil stocks or directly purchase rapeseed oil for storage; it is strictly prohibited to process imported rapeseed and store it as national temporary storage oil; and adulteration such as mixing in cottonseed oil or palm oil is not allowed.