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A Mirror for Performing Duties | The “Little Calculations” That Got Out of Control

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2026-09-23

An Out-of-Control “Little Calculation”

　　How much harm can be caused when the head of a state-owned financial enterprise abuses his or her authority? The case of Liu Mingqiang (pseudonym), the former head of a provincial-level company, offers a stark answer: the economic losses exceeded 500 million yuan.

　　As the top leader of his organization, Liu Mingqiang should have led the company in fulfilling the responsibilities and mission of a state-owned enterprise, actively contributing to local development. Instead, he treated the power entrusted to him by the Party and the people as a tool for personal gain, acting with reckless disregard for the law and public interest.

　　In 2017, a listed company headquartered outside the province suffered a severe cash crunch due to reckless expansion and disorganized growth. Through an intermediary’s introduction and at the request of others, the company’s legal representative approached Liu Mingqiang for assistance in securing financing. After accepting illicit benefits, Liu Mingqiang failed to conduct a thorough due diligence on the company’s substantial financing needs and, disregarding risks he had already identified, unilaterally signed off on the loan disbursement.

　　Under the relevant regulations, large‑scale financing approvals are subject to strict oversight. However, Liu Mingqiang violated both discipline and law by deliberately instructing his subordinates to split this substantial transaction into two separate parts, having the parent company and a subsidiary each acquire claims against the aforementioned enterprise, thereby disguising de facto financing under the guise of formal compliance. Ultimately, despite the fact that the borrower failed to provide adequate asset‑based collateral and despite explicit objections raised by some, the financing was nonetheless approved and disbursed, all thanks to Liu Mingqiang’s intervention.

　　Just a few months later, the aforementioned financing company was hit by a severe debt crisis, halted interest payments, and ultimately defaulted in full. Subsequently, the company declared bankruptcy, leaving its creditors with no prospect of recovery.

　　This was not the first time Liu Mingqiang had disregarded risks and acted unilaterally. Earlier, another company’s executive had sought to “get on board” with Liu Mingqiang to solicit financing. At the time, the company was in poor financial condition and lacked sufficient collateral, clearly disqualifying it from obtaining funding. Nevertheless, Liu Mingqiang nonetheless forced his decision, instructing the relevant officials to approve the loan.

　　Upon the loan’s maturity, confronted with the enterprise’s inability to repay, Liu Mingqiang not only failed to promptly implement loss‑mitigation measures but also, in violation of regulations, approved another extension. Ultimately, the company was declared bankrupt, resulting in substantial losses to state‑owned assets.

　　By 2018, a related party and head of a subordinate company under Liu Mingqiang had committed gross negligence in handling a financing project in another province, resulting in the company being defrauded. To shield him from accountability, Liu Mingqiang resorted to a deceptive “shell‑company” scheme: he identified a provincial firm with financing needs and instructed it to “assist” in acquiring the relevant project. Liu then arranged for that company to secure a substantial loan, while illegally lowering the interest rate. Ultimately, the transaction turned into a high‑risk undertaking, and the massive funds invested became Liu’s personal “ransom,” used to further his private interests at the expense of the public good.

　　Liu Mingqiang was ultimately sentenced to fixed-term imprisonment for the crimes of accepting bribes and abusing his authority as an employee of a state-owned company, among others.

　　[Case Commentary]

　　Financial state-owned enterprises manage state capital and are tasked with risk prevention and the preservation and enhancement of asset value; every financing transaction and every investment decision bears on the security of state assets.

　　Liu Mingqiang, who has long held leadership positions in the financial sector, was well aware of risk thresholds and regulatory requirements. Yet, driven by personal interests, he subordinated professional judgment to his own will and turned institutional constraints into a “flexible space” that could be arbitrarily circumvented. Faced with financing projects that clearly failed to meet regulatory standards, he disregarded risk warnings, suppressed dissenting views, and fragmented projects to evade oversight. On the surface, these were mere instances of faulty decision‑making; in reality, they revealed a comprehensive breakdown of disciplinary awareness, adherence to rules, and sense of responsibility, while also exposing serious distortions in his outlook on performance and his understanding of power—culminating in substantial losses.

　　This case serves as a stark warning: Party members and leading cadres who wield public authority must focus their thoughts and energy on fulfilling their duties and responsibilities in the proper manner. They must clearly understand what they are authorized to do, what they are not, for whom they should act, and how they ought to proceed, ensuring that “acting in accordance with rules and regulations” becomes a conscious practice. They must rein in the unchecked exercise of power, always upholding the principle that high office does not confer arbitrary authority and significant responsibility does not give rise to personal gain, and resolutely preventing the abuse, omission, or misallocation of power.

Source: Jiangxi Daily, Xiong Feiyun and Zhu Hua

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Source of the article: Integrity Jiangxi WeChat Official Account

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