Industry talk about China Railway Construction's 800million yuan entertainment expenses: failing to make a good account hit the muzzle of the gun
in the construction industry, the "food, drink and gifts" given by the construction general contractor to Party A seems to have become a stepping stone to get the project, which is reflected in the financial statements of Listed Companies in the construction industry, which is the eye-catching "entertainment expenses"
recently, China Railway Construction (;) The entertainment expenses of 837 million yuan have attracted attention. Combing the annual reports of Listed Companies in the construction industry, it is found that the high "entertainment expenses" seem to have become a common problem in the industry
the actual entertainment expenses are much higher than the book value
compared with other industries, the entertainment expenses of the construction industry are far ahead: in addition to the entertainment expenses of China Railway Construction Corporation, which exceed 800million yuan in consecutive years, the entertainment expenses of China Communications Construction Corporation () are as high as 779 million yuan, and the entertainment expenses of China Hydropower () are 343 million yuan. In addition, the entertainment expenses of Shanghai Construction Engineering Group (), Gezhouba (), china CNR (), and Jinyu shares () are all more than 100million yuan
the chief financial officer of a large enterprise told that China railway construction was exposed to 800 million entertainment expenses, but it was only last year's account that hit the muzzle of the gun. Other construction enterprises may have done a better account, but it does not rule out that this situation also exists
"generally, we will adjust the business entertainment expenses, such as turning part of the money into training expenses and other items. To put it bluntly, the actual expenses may be higher, but most enterprises will adjust the business entertainment expenses." The above financial director said that the operation of adjusting entertainment expenses is not difficult: "make an account to see whether the original bill you take is authentic. If you give 10000 yuan as a gift, now there is a 10000 yuan training expense invoice, which is nothing"
in fact, as the financial director mentioned above, construction companies, especially some general contracting companies, often spend more on business entertainment than reflected in the book
then, where are the generally high business entertainment expenses of construction enterprises spent? The staff of the Board Secretary Office of a listed company told this newspaper that the entertainment expenses are mainly the entertainment expenses generated in business transactions, which are involved in all departments. "Business entertainment expenses must be related to business, such as our board secretary office, such as holding a shareholders' meeting, and the lawyer must arrange food and accommodation when he comes, which is also very normal."
he said that after business entertainment expenses occur, they usually buy their own bills and then reimburse, and the reimbursement is standard, "it is impossible to report with an invoice for no reason, and it is unrealistic to take people to eat and drink casually and then reimburse"
the management of a local state-owned construction enterprise told that the expenses spent by the construction enterprise on "entertainment" actually include banquets, activity expenses, travel expenses, gifts and souvenirs, and sometimes direct money
central enterprise construction companies also need to pay bribes in order to get the bidding project. For example, in September last year, China Railway sixth Bureau and Fujian Xintong company, a private enterprise, had a fight in Jing County, Anhui Province. More than 100 people from China Railway sixth Bureau participated in the incident, and 27 people from Fujian Xintong company were hospitalized. The reason for the conflict was that Fujian Xintong company paid hundreds of millions of yuan of "intermediary fees" to relevant departments to help China Railway sixth Bureau get the project, and then the cooperation broke down and a fight occurred
at the same time, these construction companies are bribery parties. According to a previous report of this newspaper, Sany Heavy Industry (), the largest construction machinery company in China, will list a batch of "public relations fees" every Spring Festival and other traditional festivals. According to the "2011 spring festival public relations expense submission and review schedule of branch (dealer) prefix system customers and major customers in the cement industry" provided by the former informant, in 2011, the total amount of public relations expenses reported by SANY branches and dealers to the head office reached 13.855 million yuan, and the preliminary review expense was 5.02 million yuan
an official of the government construction department told this newspaper that sometimes giving red envelopes directly is "not very good-looking", and the construction company will think of ways to plug money: "for example, when everyone plays mahjong together, the other party's boss says to his subordinates that you are only allowed to lose, not to win, so it is often not rare to win a few thousand yuan in a mahjong game."
why is the entertainment fee in the construction industry so high
engineering projects are the "lifeline" of construction enterprises. In order to grab projects and get projects, enterprises spend different proportions on entertainment. "It depends on the relationship with Party A, as well as the profit margin of the project itself, the strength of competitors, their own backstage, and, of course, the 'greed' of the other party." The above state-owned enterprise managers said
according to the above government officials, if it is a 50million project, at least 2million to 3million enterprises are used for entertainment expenses. "If you don't find a way to see off the guests, the money hasn't been spent. Jinan experimental machine has two structures, one arm structure and portal structure, and you can't do the project at all. This is the unspoken rule of the industry."
"it is impossible to say that there is no fishiness". Another manager of a building materials enterprise told that when it comes to some government projects, enterprises often don't get projects based on strength, reputation and performance
he revealed to that the "charging standard" of the project is often indicated in the project bidding document, and this charging standard is often directly related to the profit of the project. For example, the project marked with "general contracting level 1" means that the integrated management can start from one production line, and the management fee is as high as 30%, that is, the development trend of the fixture of the material testing machine is briefly described as follows: This is a project with "rich oil and water"
"as long as you do it in this industry, no one can escape. No one is willing to spend this money. I can have a light meal. Why should I invite you to a luxurious meal?" The above-mentioned state-owned enterprise managers told that the reason why enterprises do this is simply because the bidding process is opaque, nonstandard and unfair. "Party A has mastered the resources, and if your relationship with them is not in place, the project will be ruined, so we have to activate the relationship and operate more to win the project."
he added that this was determined by the "big climate." the rectification of this situation cannot be solved within the development strategy of implementing efficient and green plastic granulators in a short time. These gray areas are really not easy to supervise. "