Recently, citizens of Shangluo City, Shaanxi Province, reported that the government of Hujiayuan Town in Shanyang County owed construction companies tens of millions in project payments, leading to the court freezing the basic expenditure account of the town government. This caused the suspension of salaries for town government officials and employees, triggering concerns among many workers.
According to reports from mainland media, a few years ago, the government of Hujiayuan Town in Shanyang County owed a construction company (a company in Shaanxi) tens of millions of yuan for a construction project, resulting in the company suing the government.
In 2024, Shanyang County Court heard the case of “construction project contract dispute,” with the company ultimately winning the lawsuit. However, the Hujiayuan Town government failed to pay the project funds on time, leading the company to apply for compulsory enforcement, resulting in the court freezing the town government’s account.
Subsequently, the town government of Hujiayuan made partial payments of the debt and promised to settle the remaining balance in three installments. The two parties reached an enforcement settlement agreement, agreed upon by the company, and the court lifted the freeze. However, the town government breached the agreement once again.
Upon the plaintiff company’s reapplication, the case was elevated to the intermediate court in Shangluo City for enforcement. In July of this year, the Shangluo Intermediate Court froze the town government’s account once again.
According to a person in charge of the Hujiayuan Town government, the account frozen by the court was the town government’s “basic expenditure account,” mainly affecting the distribution of salaries to officials and employees and the deduction of medical insurance premiums.
Following the freeze of the town government’s account, the salaries for all officials and employees in the town could not be paid on time in August, and the processing of medical insurance deductions for workers was also forced to stop altogether.
One worker expressed that this has a greater impact on young cadres and employees who need to repay mortgages and car loans. Additionally, employees who are ill cannot access their medical insurance benefits smoothly.
Some staff members are concerned that if the freeze continues, it may affect the disbursement of special funds for vulnerable groups, thereby exacerbating grassroots conflicts.
A staff member of the town government believes that if the town government fails to pay the debts on time, the court can freeze non-special purpose funds or idle funds in the account, instead of shifting the consequences onto officials, employees, and the general public. Therefore, the town government has submitted an objection application to the Enforcement Bureau of the Shangluo Intermediate Court.
The incident has attracted attention, with many netizens criticizing, “The government owes debts, companies file lawsuits, but it’s the ordinary workers who suffer the consequences.” “Many townships have similar debt issues, and once finances are frozen due to litigation, it’s always the ordinary workers and residents who suffer the most.”
On August 30, relevant departments in Shanyang County stated that through collaborative efforts, the town government of Hujiayuan had fully paid the salaries for officials and employees in August, with medical insurance and pension funds also being paid on time. As for the issue of overdue project payments, the Hujiayuan Town government has been in discussions with the parties involved to find a resolution.
On August 31, a worker from the Hujiayuan Town government confirmed that they had received their salaries on August 30, and social insurance payments were also made as scheduled.
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