The downturn of the real estate market and the shrinkage of profits have triggered a storm of anti-corruption by several housing enterprises

 The downturn of the real estate market and the shrinkage of profits have triggered a storm of anti-corruption by several housing enterprises

Meis Real Estate (03990.HK) recently issued a public announcement through its audit wind control center, Wechat, that six employees have been found to have made illegal profits and the amount is large, which has been taken criminal compulsory measures by local public security organs.

This is only the continuation of the anti-corruption storm in the real estate industry this year. Since 2019, many enterprises, such as Yajule, Longshi, Wanda and Fuxing, have publicly notified employees of corruption incidents.

The high-profile exposure of corruption by housing enterprises is related to the downturn of the market, which mainly deters the internal market. Zhang Dawei, chief analyst of Zhongyuan Real estate, told the associated press. Many real estate practitioners analyzed that the marketing department has become a disaster area of corruption because of its large rent-seeking space.

High-profile anti-corruption of several housing enterprises

According to the announcement of the United States, after verification, the former deputy general manager of a regional company acting on behalf of one, the former project marketing manager Ouyang Mou, colluded with five subordinate real estate consultants Gao Mou and other people to manipulate the housing resources by using sales control, and earned more than one million yuan in illegal profits from additional price sales; Hu Mou, the former general manager of a regional company and a city company, took advantage of his position and asked to operate during his tenure as the general manager of the project involved in the case. Sales managers manipulate housing resources for their illegal interests, the amount is large.

The announcement also said that at present, six persons of Dai Mou, Ouyang Mou, Hu Mou and three real estate consultants have been taken criminal compulsory measures by local public security organs. Among them, the main responsible person of Dai Mou and Ouyang Mou has been approved and arrested by judicial organs according to law.

In response, the United States of Americas real estate sector to the Financial Associated Press reporter: The United States has established a sound internal risk prevention and control system, for touching the red line of corporate management, we will investigate to the end, will never tolerate, serious cases handed over to the judicial authorities for processing.

In fact, the United States is not the first high-profile anti-corruption Housing enterprises this year. Since 2019, at least six well-known Housing enterprises have made public announcements about employee corruption.

Yajule released internal documents in January this year, dismissing Hainan Regional President and Guangzhou Regional Vice President for serious violations of honesty and discipline. In May, Deng Min, the executive vice president of Longshi Chengdu Company, was taken compulsory measures by the judicial authorities for suspected economic crimes.

Zhang Bo, chief analyst of Anjuke Real Estate Research Institute, pointed out that this year, the resistance to the development of Housing enterprises has increased, and there are also great pressures on the institutions and enterprises associated with housing enterprises, which make the corruption incidents easy to expose in the early stage. While the pressure of Housing enterprises has increased, the mobility of internal management posts has increased significantly, and the personnel changes of some core posts tend to expose the problems in the early stage. It also makes corruption easy to surface.

In the past, they made money and wanted to fight hard, so their bosses paid more attention to share, and some corrupt things were basically solved internally. At present, the market is not so good and profits have been reduced. In this case, the main reason for public notification of corruption is to deter the internal, most of which are enterprises whose scale has increased significantly recently. Zhang Dawei told the associated press.

When sprinting, who cares how fast the heart rate is? There is a price to pay for speeding up development. The general manager of a regional company in Vanke told reporters that small and medium-sized Housing enterprises have not experienced the process of sales scale explosion, do not know where to keep up with management, and the internal audit mechanism of large-scale housing enterprises has blocked loopholes for a long time.

Marketing as a disaster area

Reporters learned that anti-corruption has always been a normal action of housing enterprises, such as Vanke and other large-scale housing enterprises in addition to the establishment of an audit department, every year, anti-corruption training for employees, new employees in Longhu will also participate in anti-corruption training. In 2015, Vanke, Biguiyuan, Shimao and Fuxing, together with more than a dozen benchmarking enterprises such as Alibaba, Mei and Shunfeng, established anti-fraud alliances with some associations, pointing directly to various dishonest violations. Deng Min, the former executive vice president of Longshi Chengdu Company, was fired and entered into the anti-fraud alliances faithless employees information system.

According to the head of a real estate consulting company in Shanghai, its not that real estate companies have stepped up their anti-corruption efforts this year, but that more companies have chosen to actively expose themselves. To make information public is beneficial to the companys brand safety, and it doesnt need to be guessed by the outside world.

The large amount of project contracts is easy to pay attention to. The marketing is fragmented, the list is large and the amount is small, and all of them are loose customers. The audit work is detailed and needs to be prevented one by one. Said the general manager of the Vanke regional company.

An employee of Times Real Estate told reporters: At the beginning of the year, there was a period of Xiaoyangchun, and several sales executives of a project of Foshan Company were pulled down. Compared with investment and development departments, marketing outlets are indeed more prone to accidents.

Longshi insiders have told the Associated Press that marketing costs generally account for 3% of the total value of the project, and there is more room for rent-seeking. In addition, because the marketing line has the right to price and select houses, when the market situation is good, a certain fee can be charged by selling high-quality houses, which leads to the marketing plate becoming the focus of corruption of executives in real estate enterprises.

From the case of developers anti-corruption, the first is to investigate and deal with the marketing outlets; the second is to investigate and deal with the purchasing end, especially in the field of building materials and so on, which often leads to a lot of corruption; the third is to control the land, especially in the field of land acquisition and so on, there will be opportunities for all kinds of corruption. Yan Yuejin, director of research at the think tank center of Yiju Research Institute, said.

Source of this article: responsible editor of FINA: Yang Bin_NF4368