The Fourth Lingshi Financial Crisis

Chapter 98 Mine Corruption Case

Facts have proved that He Mingyuan is really capable.

Although he failed to capture the suspect in the Luanshicheng Xuantie Mine, in just a few days, he had roughly figured out the situation of the Luanshicheng Mine

As we all know, Luanshicheng is famous in Zhongzhou for its rich mineral resources.

The Xuantie mine acquired by Li Qingning originally belonged to the Gu Yunzong, the overlord of Luanshi City.It's just that this black iron mine has entered a period of depletion, and even if a lot of manpower is invested in mining, it can only obtain meager profits.

If it is a black-hearted capitalist on the earth, it is completely possible to squeeze the workers to death and squeeze profits by infinitely lowering the cost, but the Kyushu cultivation world will not allow this to happen.

The reason is very simple, the number of mortals is related to the speed of merit accumulation of the cultivators.

The cultivation forces in Zhongzhou are like local officials in Huaguo, and the population is the biggest KPI of the cultivation sects in these places. Therefore, all major local sects attach great importance to social governance and hope to absorb more mortal population.

For those sects with poor social governance, not only the Wuliangjian sect will punish them, but local mortals will also vote with their feet to leave the area controlled by this sect and migrate to the sphere of influence of the sect with a higher standard of living.

The reason why the Haiya Sect became the strongest comprehension force in the nearby area, suppressing the Guyun Sect and the Shanying Sect, is because the living standards and population of mortals in the Haiya area are much higher than those in Tianshu City and Luanshi City. Absolute advantage, thus providing more seedlings of cultivation and sources of merit for the Haiya faction.

If the living conditions of the miners in Luanshi City are too miserable, and even a large number of miners die, the local mortals will definitely migrate to the neighboring Haiya City and Tianshu City with better living conditions. something happened!

Therefore, unlike the binary game of laborers-capitalists on the earth, the realm of comprehension is actually a ternary game of laborers-capitalists-cultivators. Capitalists oppress laborers, laborers kidnap practitioners, and practitioners supervise capitalists.

The three use each other, and then check and balance each other.

Therefore, as a labor-intensive industry, managing mines has always been very difficult for Xiuzhen capital.

Under the circumstances that capital cannot do whatever it wants, as long as there is a slight omission in the management of the Xuantie Mine, the mining profits will be completely wiped out, and there may even be a huge loss in reverse.

And mine management is just the most complicated of all industries!
From the time the ore is mined to the final completion of sales and conversion into profits, not only are there many intermediate links, but there are also many people who handle them.

The high-level mines may be corrupted, the middle-level sales and purchasing personnel will run away, and even the grass-roots miners have the conditions to steal. The world’s largest diamond factory, De Beers-Botswana Diamond Factory, has specially set up five complicated security inspection procedures. It takes up to half an hour to get in and out each time.

This is not to prevent thieves and robbers, but to prevent front-line workers from embezzling high-grade diamonds!

As long as the management is a little lax, this kind of mining enterprise will fall into the predicament of leakage from all sides...

According to He Mingyuan's research on the miners at the grassroots level, the problem of corruption in Luanshicheng Xuantie Mine had already existed during the management period of Guyun Sect. However, Luanshicheng was the home field of Guyunzong after all, and the overall corruption situation was still controllable.

However, due to the disproportion between the management resources invested and the profits obtained, Gu Yunzong finally chose to abandon the black iron mine, which was about to be exhausted and had extremely low gross profit margins, and sold it to foreign businessman Li Qingning.

Previously, Guyunzong had always adopted a high-handed attitude towards corrupt officials, so the Luanshicheng mine could barely make a profit or lose money. But after Li Qingning, an outsider, became a receiver, Guyunzong completely let go of the Xuantie mine.

Without the home supervision of local snakes, the corruption of Xuantie Mine can already be described as lawless.

What's more terrible is that the Guyunzong staff who were in charge of supervising the Xuantie mine before even directly colluded with the corrupt personnel inside the mine, and completely emptied the entire mine by cooperating with the inside and outside.

The corruption methods of these corrupt elements are very simple and crude, that is, they directly treat high-grade ore as low-grade ore, sell it to ore traders at a low price, and then take huge kickbacks from the traders in turn.

This method of operation is very clumsy, but it is difficult to find evidence.

However, He Mingyuan found another way, and found the key breakthrough of the case from the Haiya City Commodity Exchange.

According to He Mingyuan's judgment, no matter where these ore traders buy black iron ore, they will eventually pull the black iron ore to Haiya City, a trade center city, for shipment.

Because they have no other shipping locations to choose from.

No matter which world you are in, commodity trading has obvious regional agglomeration.Whether it is a commodity buyer or a seller, they all hope to do transactions in places with the largest commodity throughput. The greater the commodity throughput in a certain place, the more fair the transaction price is, the smaller the information asymmetry between buyers and sellers, and the less likely it is to be caught. Cut the leeks.

Even with such a huge global market on Earth, there are only two major crude oil trading markets, Brent and U.S. Oil, and there are only two major gold and silver trading markets, London and COMEX, and there is basically only London for copper, aluminum, nickel, and zinc.

Even without physical foreign exchange transactions, the turnover of a single city in London accounts for one-third of the world's total.

Just like London and New York started out as ports and trade, Sea Cliff City has naturally become the largest commodity trade distribution center in the eastern part of Central China by virtue of its geographical advantage in overseas trade routes.

The place where Yang Lu was attacked by Ting He Yu Pavilion's killer was the storage yard for the goods of the major chambers of commerce.

These cargo yards covering an area of ​​several square kilometers are piled with various bulk commodities worth tens of billions of Lingshi coins all year round. This massive inventory of commodities also constitutes the sea god needle and the basis for the pricing of various commodities in Haiya City. anchor.

No one can manipulate the commodity market with such a large flow, even the Haiya Department itself does not have this strength!

This is why everyone says that the [Haiya Price Composite Index] compiled by Xu Yannan is the most authoritative currency price index in Central China, and it can even indicate the balance of currency supply and demand in the entire cultivation world to a certain extent.

As the most commonly used raw material for standard flying swords during the gas refining period, black iron ore has always been a bulk commodity that all sects must purchase.

Just like the earth’s government procurement needs to strictly prevent the purchasers from cheating for personal gain, the major sects in the southeastern part of Zhongzhou will basically require the purchasers to purchase according to the market price in Haiya City in order to prevent their own sect’s purchasers from guarding against themselves.

Open prices and open transaction records can minimize procurement corruption, which is why X Dong self-operated has become the designated procurement channel for units at all levels in recent years.

For example, the Haiya faction stipulates that when the Haiya faction's refining hall purchases raw materials, the time from the issuance of the purchase order to the completion of the purchase should not exceed three days. The benchmark price of the purchase is based on the average price of the raw materials during these three days.

If the actual purchase price is higher than the benchmark price, Haiyapai will deduct the performance bonus of the purchaser accordingly. If the actual purchase price is lower than the benchmark price, 50% of the remaining part will be included in the performance bonus of the purchaser.

For these ancient cultivation sects with a history of tens of thousands of years, this is the most basic incentive and restraint mechanism formed in the process of sect management, and it is also the institutional basis for the existence of various sects. The tens of thousands of years old school, the management level is still as primitive as an earthen workshop, this situation does not exist in the Kyushu cultivation world.

(End of this chapter)