2014-08-28

¥600 Million Missing From Guang Group Account

Previous coverage of Guang Group:

Guang Group Needs ¥500 Million; High interest Loans To Blame
Latest on the Guang Group
China Top 100 Developer Guang Property Rumored Bankrupt; Firm Says Capital Tight, But Not Bankrupt; Was Paying 21.6% Interest

The latest news is about another unfinished development in Huizhou. The developer sold more than ¥900 million worth of property in advance sales. After subtracting various costs, the developer should have ¥600 million remaining. Instead, the account has ¥13,000. The article discusses how the misappropriation of funds is widespread in the industry.

When prices are rising, it's no problem to take money from one development's advance sales and use it for other purposes because cash flow is strong. When the cash flow slows, it becomes a game of musical chairs to see which account, and which developers, will find themselves short on cash.

光耀地产账户只剩1.3万 楼盘烂尾购房者“钱房两空”
Guangyao estate recently been included dishonesty "blacklist", at the same time, the company's unfinished project Fei Li Huizhou Port traced 600 million yuan Yushoukuan missing, account only 13,000 yuan.

In fact, just glorious event of the sale of financial regulatory loopholes "tip of the iceberg" in the real estate sales cycle, Yushoukuan special funds were misappropriated common occurrences. In recent years, Chongqing, Hangzhou, Wuhan and other places have been discovered Yushoukuan misappropriated estate funds unaccounted for.

That began more than ten years agoCommercial Yushoukuan regulatory system, the original intention that the government intervene to ensure that the house is not strong regulatory unfinished, however, the relevant departments of local regulatory enforcement often "nominal."

"Owners pay back the principal to the developer provides the opportunity to re-use of funds, some developers took the money to do other direct investment or for mortgage loans, the problem is not when funds can be mixed in the past, but if the money stuck up, buyers will face 'money bedrooms and two empty' dilemma. "Guangdong Finance department of a large room, a source told the" China Times "reporter.

600 million unaccounted Yushoukuan

Into financial difficulties in the real estate crisis continues to shine, its multiple projects due to work stoppage was not handover rights owners frequently, followed by its multiple fund projects initiated into a series of payment crisis, its new capital for listed companies * ST conducted glorious estate a sum of 60 million yuan loan guarantee is also an illegal operation.

Among them, the long lay-off port project in Huizhou Li Fei pushed to the cusp. Return to work due to a lack of start-up capital, the project repeatedly delayed handover period, was nearly a hundred owners rights.

According to relevant regulations, pre-paid funds are mainly used for the construction of the construction schedule, for equipment, materials, money and tax purposes, not for other purposes.

"From the bank's point of view, part of the sale of funds to other forms for other uses, as a commercial bank regulatory agencies can not only say that the cost fell to a special account, and can pipe to pipe." Huizhou branch of a large state-owned banks to a person reporter said, "the sale of funds for other purposes, regulators and banks are not traced, usually developers are able to do."

According to media quoted Huizhou City Housing Authority described the latest display, Fei Li Hong Kong sale of capital escrow account now only 13,000 yuan. The rights of owners to sell control through the project and price estimates derived statistics, housing more than 1100 sets of items for sale, accounts for about 900 million yuan Yushoukuan. Deduction allocated 150 million yuan to use, and there is 40 million yuan mortgage payments are not credited, outside statistics, Fei Li Hong Kong project since the opening date, there are 600 million yuan escrow account Yushoukuan unaccounted for.

"Owners have to pay back the principal from the outset did not keep to the designated account, which is the developer intentionally, under the responsibility of the developer, the bank can not manage funds into a bank account before the action." Above bank pointed out that the pre- Sale funds were misappropriated requires a series of regulatory reporting procedures, "is not easy to be able to do, so many developers at the time of sale, the owners will not let the bank according to the provisions of the Yushoukuan designated escrow account, while is bypassing this account, bank account deposit developers, which are not regulated. "

Presented by the rights owner, signed in May 2012, "the purchase of real estate (mortgage) shall deposit account with a knot book" clearly marked, Fei Li Hong Kong regulatory accounts in three-way Hengjiang CCB Huizhou Branch, however, the owners have to pay back the principal 491,491 was transferred to another account at the beginning, not the bank designated escrow account.

A statement of the bank in this book promise to the owners, to ensure that funds focused on real estate sale for post-construction, to ensure the purchase of real estate by buying subsequent housing fund (mortgage payments) of all stored Yushoukuan special accounts, such as violation willing to take responsibility.

However, the bank did not honor these commitments. Li Fei port project after the sale of the year, CCB special account designated Yushoukuan not paying back the deposit money back section with actual sales in line, nor do to supervise other banks will be the responsibility of paying back to the Special Account .

Huizhou City Housing Authority publicly testify the existence of illegal banking operations, said the mortgage bank does not fulfill its commitments, although a statement issued by the book, but still illegal to mortgage payments directly into the general account of developers, non-compliance with the tripartite agreement.

"Glorious estate practice has not been to stop the Housing Authority." A source close to government sources revealed Huizhou City Housing Authority, the Housing Authority provides policy oversight responsibilities to be fulfilled, but the Housing Authority does not supervise the real power, not requiring banks to check the pre- Back to the books of this article.

Regulatory "black hole"

In fact, the glorious estate of the real estate practice of secret operations conducted Yushoukuan not uncommon resentment developers of the system is large, misappropriation Yushoukuan has become an open secret in the industry.

"Developers will use more or less part of the sale of funds, some small and medium housing prices because the funds are not well-off, and sometimes take greater risks, privately appropriated Bacheng Yushoukuan." Housing prices, general manager of the Guangdong region of a listed company, told reporters .

According to information rights owners to master and Housing Authority provided Fei Li Guangyao estate Huizhou Port project was misappropriated funds accounted for more than Liu Cheng proportion Yushoukuan receivable.

Newspaper reporters investigation that Chuanghong estate project located in Guangzhou Nansha District escrow account funds are being misappropriated. Chuanghong real estate "Master"黄鸿明suspected involvement in Guangzhou City Party Secretary Wanqingliang case after being taken in for questioning, the company short time into financial difficulties, problems with multiple projects.

According to the owner's sales statistics, real estate Chuanghong Nansha project total housing fund for 820 million yuan, according to the provisions of the Housing Authority, to project closeout phase should be retained 120 million yuan for the ending of acceptance, but the owners and developers to check that the Housing Authority Finally, only the remaining 10 million yuan in the escrow account. This means that projects more than 100 million yuan sale funds were misappropriated funds accounted for more than Bacheng should stay.

Up to now, the implementation of the pre-sale financial supervision more than 40 cities, some cities under the direct supervision by the government, and some by other delegate agencies oversight.

"General self-declaration by the developer account status, this process can do a lot of hands and feet." The government pointed out that the full power of oversight by the government, will increase the number of additional administrative costs, the efficiency of real estate development will be affected , which will hit the developers' enthusiasm, "So some local governments are not strictly regulated."

No comments:

Post a Comment