The defendant of a county-level government in Hebei who defaulted on the project payment went to court. Both the first and second trials have made judgments, demanding to pay more than 8 million yuan and a certain amount of liquidated damages to private enterprises, but it is still delayed.
Recently, Pacific Construction Group Co., Ltd. reflected the above situation to The Paper.
Pacific Company said that in 2018, after they were owed nearly 10 million project funds by Gaoyi County, Hebei Province, they took the Gaoyi County Government and Gaoyi County Housing and Construction Bureau to court.
According to the relevant judgment of the Intermediate People’s Court of Shijiazhuang City, Hebei Province, in 2013, Pacific Company and Gaoyi County Government signed a cooperation framework agreement on the construction of some infrastructure projects.
Subsequently, Pacific Company and Gaoyi County Housing and Construction Bureau signed five Construction Contracts, involving five local road projects. At present, relevant projects have been completed and put into use.
According to the contract, the total price of the five projects was nearly 36 million yuan, but until the date of the Pacific Company’s prosecution, Gaoyi County still had 8.62 million project funds unpaid.
In this regard, the Gaoyi county government submitted relevant evidence to the court to prove that the project of Pacific Company "has quality problems", but the court did not recognize it.
In March 2019, Shijiazhuang Intermediate People’s Court ruled that the Gaoyi County Housing and Construction Bureau paid the remaining 8 million project funds to Pacific Company within 30 days from the effective date of the judgment, and paid liquidated damages according to the corresponding standards. At the same time, Gaoyi County Government shall be jointly and severally liable for the above obligation to pay for the remaining projects.
Subsequently, the Gaoyi County Housing and Construction Bureau appealed to the Higher People’s Court of Hebei Province.
The Paper saw from the relevant judgment of Hebei Higher People’s Court that Gaoyi County Housing and Construction Bureau still believed that there were problems in the project quality, and the maintenance cost should be deducted from the project payment.
Relevant judgments of Hebei Higher People’s Court
The Hebei Higher People’s Court did not support this appeal, because the Gaoyi County Housing and Construction Bureau provided relevant evidence, which failed to prove that the quality problem was caused by the unqualified construction of Pacific Company, and failed to prove that the related maintenance costs were related to the construction of Pacific Ocean.
The Hebei Provincial High Court made a judgment in August 2019, dismissed the appeal and upheld the original judgment.
However, it was not until the beginning of May this year that the Pacific Company reported to The Paper that it had been more than half a year since the final judgment was issued, and it still had not received the project payment.
According to industrial and commercial data, the shareholders of Pacific Construction Group Co., Ltd. are Yan Hao and Yan Xin, with a registered capital of 10.5 billion yuan. The company started in Huai ‘an, Jiangsu, and its headquarters has been in Nanjing for a long time. At present, its registered address is located in Urumqi, Xinjiang.
On May 6th, a reporter from The Paper called Zhang, the section chief of the Municipal Bureau of Gaoyi County Housing and Construction Bureau, and the other party said that he was only "working specifically" and did not know the final payment.
Zhang Qi, deputy head of Gaoyi County People’s Government in charge of housing construction, transportation and other work, did not answer the question directly, but said to The Paper, "You can come and see the quality of the project yourself." Zhang Peng also said that the local authorities are already dealing with the problem of arrears.
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