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Chapter 98 Mine Corruption Case

Facts have proved that He Mingyuan is indeed very capable.

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

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

The black iron mine acquired by Li Qingning originally belonged to Guyun Sect, the overlord of Luanshi City. However, this black iron mine has entered a period of depletion. Even if a large amount of manpower is invested in mining, it can only make a meager profit.

If it were a black-hearted capitalist on Earth, he could squeeze workers to death and extract profits by reducing costs infinitely, but the Kyushu cultivation world would not allow this to happen.

The reason is very simple. The number of mortals is related to the speed at which cultivators accumulate merit.

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

For a cultivation sect with poor social governance capabilities, not only will the Wuliang Sword Sect punish them, but local mortals will also vote with their feet to leave the area controlled by this sect and move to the sphere of influence of the cultivation sect with a higher standard of living.

The reason why the Haiya Sect can become the strongest cultivation force in the nearby area and suppress the Guyun Sect and the Shanying Sect is because the living standards and population of mortals in the Haiya area are better than those of Tianshu City and Luanshi City.

Absolute advantage, thus providing the Haiya Sect with more cultivation seedlings and sources of merit.

If the living conditions of the miners in Luanshi City were too miserable, or even a large number of miners died, local mortals would definitely migrate in large numbers to the neighboring Haiya City and Tianshu City with better living conditions. The local overlord Guyun Sect would never sit idly by and watch this happen.

Something happens!

Therefore, unlike the binary game between workers and capitalists on Earth, the world of cultivation is actually a three-dimensional game between workers, capitalists and cultivators. Capitalists oppress workers, workers kidnap cultivators, and cultivators supervise capitalists.

The three make use of each other and then check and balance each other.

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

In a situation where capital cannot do whatever it wants, as long as there is a slight oversight in the management of Xuantie Mine, mining profits will be completely wiped out, and there may even be a huge loss in turn.

And mine management is the most complex of all industries!

From the time the ore is mined to the final sale and conversion into profit, there are not only many intermediate links, but also many people handling it.

The top management of the mines may be corrupt, the middle-level sales and purchasing staff may also be guilty of escaping, and even the miners at the grassroots level may be able to commit petty theft. The De Beers-Botswana Diamond Factory, the largest diamond factory on earth, has specially set up five complex security inspection procedures.

It took up to half an hour to get in and out each time.

This is not to prevent thieves and robberies, but to prevent frontline workers from embezzling high-grade diamonds!

If management is even slightly lax, this kind of mining enterprise will fall into the dilemma of leakage from all sides...

According to He Mingyuan's investigation of grassroots miners, the problem of corruption in Luanshicheng Xuantie Mine has existed as early as the Guyun Sect's management period. However, Luanshicheng is the home of the Guyun Sect after all, and the overall corruption situation is still controllable.

However, because the investment in management resources was not directly proportional to the profits obtained, Guyun Sect finally chose to abandon the Xuantie Mine, which was about to be exhausted and had extremely low gross profit margin, and packaged it and sold it to Li Qingning, a foreign businessman.

Previously, the Guyun Sect had always adopted a high-pressure attitude towards corrupt personnel, so the Shicheng Mine could barely make a profit or lose any money. However, after Li Qingning, a foreigner, became the successor, the Guyun Sect completely gave up on the Black Iron Mine.

Without the local supervision, the corruption in Xuantie Mine can be described as lawless.

What's even more terrible is that the Guyun Sect staff who were previously responsible for supervising the Xuantie Mine even directly colluded with the corrupt personnel inside the mine, completely hollowing out the entire mine by cooperating inside and outside.

The corruption methods of this group of 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 in turn receive huge kickbacks from the traders.

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

However, He Mingyuan took a different approach and found the key breakthrough in the case from Haiya City Commodity Exchange.

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

Because they have no other shipping location to choose from.

No matter where in the world, commodity transactions have obvious regional agglomeration. Both buyers and sellers of commodities hope to do transactions in places with the largest commodity throughput. The larger the commodity throughput in a certain place, the higher the transaction price will be.

Fairness means the smaller the information asymmetry between buyers and sellers, the less likely they are to be cut off.

Even with such a huge global market, the main crude oil trading markets are Brent and U.S. Oil, the main gold and silver trading markets are London and EX, and copper, aluminum, nickel, and zinc basically only have one in London.

Even for non-physical foreign exchange transactions, London alone accounts for one-third of the world's turnover.

Just like London and New York started out because of ports and trade, Haiya City has naturally become the largest commodity trading center in the eastern part of Central China by virtue of its location advantages on overseas trade routes.

The place where Yang Lu was attacked by the killers from Tingheyuge was the storage yard for goods from major chambers of commerce.

These cargo yards, covering an area of ​​several square kilometers, are stacked with various bulk commodities worth tens of billions of spiritual stone coins all year round. This massive inventory of commodities also constitutes the anchor and pricing guide for the prices of various commodities in Haiya City.

anchor.

No one can control a commodity market with such a large volume of traffic, not even the Haiya family themselves have this power!

This is why everyone says that the [Haiya Price Comprehensive Index] compiled by Xu Yannan is recognized as the most authoritative currency price index in the entire Zhongzhou, and 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 the standard flying sword 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 practicing favoritism and malpractice, in order to prevent the purchasers of their own sects from cheating and stealing, the major sects in the southeastern part of Central China will basically require the purchasers to purchase according to the market price in Haiya City.

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

For example, the Haiya Sect stipulates that when purchasing raw materials for the Haiya Sect Refining Hall, the time from the issuance of the purchase order to the completion of the purchase shall not exceed three days. The base price of the purchase shall be based on the average price of 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 purchasing staff accordingly. If the actual purchase price is lower than the benchmark price, 50% of the remaining amount will be included in the performance bonus of the purchasing staff.

For these ancient cultivation sects with a history of tens of thousands of years, this is the most basic incentive and restraint mechanism formed during the sect management process, and it is also the institutional foundation for the existence of each sect, as developed in some online articles.

An ancient sect that is tens of thousands of years old, its management level is as primitive as a local workshop. This situation does not exist in the Kyushu cultivation world.


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