Wei Xianfa, who was once awarded the title of “China’s Outstanding Private Entrepreneur” by the Chinese regime, lost his factory in Pinglu, Shanxi province to local officials who coveted the millions of dollars the business was bringing in, according to China Youth Daily.
On May 7, Zhao Kesheng, head of Pinglu’s Bureau of Civil Affairs, and his right-hand man, Yang Keyong, were charged with illegal detention of Wei, reported China Youth Daily.
Back in 1989, Wei Xianfa made an agreement with the local government on a contract to run a previously state-owned bauxite calcination factory in Shanxi province for eight years. At the time, the value of the factory was estimated at nearly 80,000 yuan. Eight years later, the Chinese regime agreed to make Wei the owner of the factory. Within a decade, the factory that was once at risk of closing down was making profits of several hundred million yuan.
In November, 2006, Wei suddenly received a phone call from local Chinese officials saying a final audit would soon be done for Wei’s business and that he would lose ownership of the factory. Wei rejected this, saying a formal liquidation should at least be conducted. The vice head of the county replied, “in Pinglu, power is stronger than the law.”
“I have five mines, 110 mine sites, buildings, depots and stockyard, these should be added to the audit,” demanded Wei. His request was refused with claims that these properties belonged to the local government, and a month later, Wei’s ownership of the factory was stripped. Wei Xianfa was detained twice during this time and was denied medical assistance.
The final factory’s assets was determined to be zero. In 2009, Wei was forced to sign a contract saying he was willing to transfer ownership of the factory to a company called Xinsheng, which belongs to a man named Yan Feng, head of the local Bureau of Water Resources.
Wei’s case began heated discussions over corruption and unlawful government intervention to private businesses.
“As an entrepreneur Wei should protect his own rights according to the law,” said Liu Ziruo, a lawyer in Beijing, who said he is willing to help Wei. “Actually, the justice department should investigate and punish such violations [by the officials].”
“I have been to Shanxi province and small and medium enterprises are suffering there,” said Pan Shiyi, chairman of China’s major online news provider and search engine Sohu. “I wonder if the main leaders really understand their situation?”
Read the original Chinese article.
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