China Local Funding Unit Got Funds Illegally, Beijing News Says
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Jiamusi New Era Infrastructure Construction Investment Group Co., a local government financing vehicle in northeastern China, used fabricated documents to illegally obtain funds, Beijing News reported on July 4.
The LGFV, based in the city of Jiamusi near the Russian border in Heilongjiang province, used fabricated urban planning documents to boost the area of land for which it owns the usage rights, Beijing News reported, citing Song Xueying, former head of the city’s Department of Land and Resources. The financing unit used the land as collateral to sell bonds, according to the report. Song is serving a prison sentence for taking bribes, the Chinese-language newspaper said.