Ten thousand tons of wheat stored in COFCO has been forgotten for 7 years. Employees have reported that no one has managed it.

中储粮光武分库正在组织车辆将已经变质的小麦运走。 吴扬 摄
COFCO Guangwu sub-warehouse is organizing vehicles to transport the spoiled wheat away. Photo by Wu Yang

Zhongxin.com, Nanyang, May 8th, “it has been nearly seven years since China Grain storage remembered to pull away more than 16000 tons of grain in our warehouse. Now these grains are broken and even pigs cannot eat them.” Recently, the person in charge of Jinshuo Grain and Oil Co., Ltd. in Xinye county, Henan province reported to the reporter.

COFCO defaults on grain depot rent all year round, causing litigation

On June 1, 2010, The Guangwu sub-warehouse of the central grain reserve Nanyang Dongxiang branch and Jinshuo Grain and Oil Co., Ltd. of Xinye County signed the lease contract of storage facilities for storing the central grain reserve. The contract stipulates that the rent fee is 50 yuan/ton, and the payment time is within 7 working days at the end of each quarter.

At the same time, the contract stipulates that the branch warehouse of China Grain storage Guangwu shall pay the rent fee of Jinshuo company in full and timely, and the liability for breach of contract shall be calculated on a daily basis, and 0.3% of the rent fee of Jinshuo company shall be delayed for one day.

According to this, the warehouse of Jinshuo company is called the warehouse of the central grain reserve Nanyang East Direct warehouse Guangwu branch warehouse Xinye Zhanghua building. It was the year when the Chinese grain stored here stored 17092 tons of wheat. After that, due to natural disasters, the number of wheat stored in zhanghualou warehouse was reduced to 16291 tons.

The wheat quality inspection report issued by the quality inspection center of Henan branch of China Grain storage company on October 30, 2010 shows that the quality grade of this batch of wheat is 2 when it is put into storage, and the color and smell are normal.

The people’s court’s written judgment of xinye county showed that the guangwu sub-warehouse of china grain storage nanyang to the east had defaulted to pay the warehousing fee of xinye jinshuo grain and oil company since the end of september 2010, which caused disputes. The arrears had reached 1.94 million yuan as of March 31, 2016.

Zhang Chunqing, the person in charge of Jinshuo company in Xinye county, said that according to the lease contract of storage facilities signed by both parties, the grain storage Guangwu sub-warehouse should pay the lease fee one day later, and a fine of 0.3 percent must be imposed. According to this calculation, the amount of grain reserves in arrears is much higher than the current court’s judgment of 1.94 million yuan. However, the court did not support the agreement of both parties in this contract in the end.

“What I didn’t expect was that state-owned enterprises like COFCO, which paid for the state’s money, would also default, cheat, and be untrustworthy.”

中储粮光武分库正在组织车辆将已经变质的小麦运走。 吴扬 摄
COFCO Guangwu sub-warehouse is organizing vehicles to transport the spoiled wheat away. Photo by Wu Yang

The huge amount of custody money was suspected of being embezzled.

The implementation plan for the small minimum purchase price in 2010 jointly issued by the National Development and Reform Commission, Ministry of Finance, Ministry of Agriculture, State Grain Administration, Agricultural Development Bank, China Grain Storage Corporation and other departments clearly pointed out that, according to the application report of the minimum purchase price Interest expense subsidy reported by China National Grain Storage Corporation, the central government allocates the daily expenses such as storage fee, loan interest, quality inspection and supervision to China National Grain Storage Corporation on a quarterly basis. COFCO and its branches shall allocate the storage fee to half a kilo points in full and timely according to the standard of 3.5 cents per warehousing/year (equivalent to 70 yuan per ton/year).

At the same time, the plan emphasizes that COFCO should standardize the grain storage behavior, and it is not allowed to rent the grain storage at the designated entrusted storage point, nor to reduce the subsidy standard of storage costs in disguised form, so as to ensure the need of safe grain storage.

In 2011, the Ministry of Finance raised the storage fee of grain stored in Henan and other places to 4.3 cents per year per half a kilo (equivalent to 86 yuan per ton/year).

It is not difficult to see from the above documents that Although COFCO Guangwu sub-warehouse defaulted on the storage fee of Jinshuo company, the state did not pay a penny less than COFCO.

It is understood that the title of the contract originally signed between Xinye County Jinshuo Grain and Oil Co., Ltd. and China Grain storage Guangwu sub-warehouse clearly reads “storage facilities lease contract”, however, the COFCO Guangwu sub-warehouse identified the nature of the contract as a “custody contract” through court judgment “.

“Regardless of the nature of the contract, only for the 16291 tons of wheat stored in the grain depot of Jinshuo company, China Grain Reserve can take 500 thousands or 600 thousands Yuan of the difference from the state finance every year, in the past seven years, only one enterprise of Jinshuo company was used to collect the total national grain storage fee, which reached more than 450 million yuan.” Zhang Chunqing said.

Zhang Chunqing told the reporter that according to his understanding, Xinye New grain and oil company, O-BODA COFFEE grain and oil company and his Jin Shuo grain and oil company stored 40000 tons of grain for the Guangwu sub-warehouse of China Grain storage, in the past seven years, COFCO Guangwu sub-warehouse has used this method to collect tens of millions of yuan of special funds for grain storage from the central government. There are still seven state-owned enterprises and private enterprises in Xinye, similar to Xinye, O-BODA COFFEE and Jinshuo, which store grain for China Grain. According to this calculation, the grain storage Guangwu sub-Warehouse used the above-mentioned grain and oil company to store grain on behalf of the state financial subsidy for 7 years can reach 50 million yuan.

More than ten thousand tons of wheat deterioration grade III grain officials collective voice

The staff of Jinshuo grain and oil company in Xinye county reported to the reporter that since the wheat stored by Jinshuo company for the Guangwu sub-warehouse of China Grain storage was put into storage in June 2010, the Guangwu sub-warehouse of China Grain storage seemed to have forgotten this matter, never send people to manage this batch of grain.

Zhang Chunqing told the reporter that at first, because he was worried that the grain was broken, he actively arranged personnel to ventilate and kill insects on the stored grain according to the standard of grain storage in China. However, when he asked the grain storage in China for this batch of operations, COFCO Guangwu sub-warehouse was ignored at all. Over the past few years, the enterprise has lost millions of yuan, which is difficult to continue.

“Seeing the food break down day by day, I was so anxious. In the middle, I constantly reflected to the Guangwu sub-warehouse of grain storage in China that if the wheat stored in the grain depot of Jinshuo company was not managed by personnel, the grain would be broken. Guangwu sub-library seems to have nothing to do, and always ignores it.”

In May 2016, the grain bureau of Xinye County partially confirmed Zhang Chunqing’s statement in a report on the situation of Henan grain inventory inspection results.

The reflection of this situation is as follows: “The grain storage in Nanyang Dongxiang branch of Guangwu: on April 28, 2016, Nanyang Grain Bureau fed back the problems found by the provincial inspection team in the inspection to Xinye grain bureau, the main reason is that the food you stored in our county has the following problems: 1. The grain surface is uneven and the approved quantity cannot be measured. 2. There are potential safety hazards, including fever, condensation, wall hanging, mildew and high temperature. There are worms in the warehouse.”

In the end, the situation report wrote: “In view of the above situation, in order to ensure the safety of grain storage, take measures as soon as possible to rectify and deal with the storage points with potential safety hazards of policy grain, so as to minimize losses”

“This batch of grain, so I watched helplessly from second-class goods to second-class goods. Until recently, due to my report, COFCO Guangwu branch hurriedly organized vehicles to pull away the food in order to eliminate the evidence of crime.” Zhang Chunqing told reporters.

According to the staff of Jinshuo company, The Guangwu branch of grain storage in China once coordinated the quality problems of wheat stored in Jinshuo grain depot through the Xinye grain bureau to find Jinshuo company, the opinion of China Grain storage Guangwu sub-Warehouse is to make up the grain storage fee for Jinshuo company according to the standard of 86 yuan/year per ton, and Jinshuo company will bear the responsibility of grain deterioration, but then this matter will not end.

Li Jingwei, deputy director of Xinye grain bureau, confirmed to the reporter that the Guangwu sub-warehouse of grain storage in China indeed coordinated the wheat stored in Jinshuo company’s grain depot several times through Xinye grain bureau. However, deputy director Li was unwilling to disclose the content of specific coordination.

The state spent huge amounts of money to purchase grain from farmers, and spent huge amounts of money to entrust the grain stored in the grain Guangwu sub-warehouse to keep the grain broken. What is the explanation of the relevant agencies of the grain stored in Henan province? The reporter called Wu Guowen, the person in charge of Guangwu sub-Bank of China Grain storage East, and Wu refused the reporter’s interview request on the grounds that he must be approved by China Grain storage Nanyang East sub-bank or China Grain storage Henan branch.

After the reporter waited for about half an hour at the gate of Nanyang East direct storage of COFCO, the relevant staff of the direct storage office made a special trip outside the gate and told the reporter that there was no approval from Henan branch of COFCO, the direct database did not accept interviews from reporters and said, “This is our regulation”.

A few days ago, the reporter came to the Henan branch of China Grain storage company located in the Eastern District of Zhengzhou. The relevant staff politely recorded the reporter’s preparation for the interview and said that they would reply to the reporter soon.

A few days later, the reporter urged him to ask when to arrange an interview. Ms. Han Ruiying, who initially received the reporter, replied to WeChat that the court had found out the facts about the question you requested, as detailed in court’s written judgment. If you have any unknown information, please go to Nanyang Intermediate People’s Court to understand. Since then, the Henan branch of COFCO no longer mentioned the matter of arranging relevant personnel to be interviewed by the reporter, nor did it answer any questions raised by the reporter, even the reporter’s phone number.

The value of wheat kept by Zhang Hualou, a branch of Guangwu, the central reserve grain, was more than 30,000 yuan. After spending millions of yuan of huge storage fees, it changed from second-class goods to other-class goods, and pigs could no longer eat it, the three-level management department of COFCO Henan has no statement and no attitude.


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COFCO Guangwu sub-bank is organizing vehicles to transport the deteriorated wheat away. Wu Yang photo zhongxin.com, Nanyang, May 8th, “it’s been nearly seven years since China Grain storage remembered to pull away more than 16000 tons of grain in our warehouse. Now these grains have

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