Shaanxi Jingwei national debt exploded at the end of March this year, involving an amount of approximately one hundred million yuan (RMB), and thousands of investors have not yet been compensated. Victims accuse that behind this fraudulent behavior is a systematic scam with official background involvement.
Jingwei National Debt Service Department was established in 1996, approved by the Xi’an Municipal Finance Bureau of the Chinese Communist Party, and reported to the Provincial Finance Department and the National Ministry of Finance. For nearly 30 years, it has been operating public business outlets on the streets of Xi’an and has been making regular payments. In 2003, when it encountered difficulties in payment, the local government intervened to coordinate.
A victim named Gaofeng (pseudonym) told Dajiyuan that he invested his entire savings of 200,000 yuan, which he had saved for years for retirement and medical treatments. “In the beginning, they promoted it as national debt, and because of the official background, many people believed in it and made purchases without doubt. But later, the government prohibited payments, and it turned into individual operations, which were actually manipulated by officials behind the scenes.”
Gaofeng pointed out that the Xi’an Municipal Government had prepared from the beginning for the final fraudulent scheme. They cover up for each other, shift blame, and deceive the public. “This is not just a case of fraud, but also a scam involving the cooperation of prosecutors, law enforcement, and party and government officials.”
He mentioned that the reason people trusted it was because it was branded as national debt. “But then the government said they didn’t authorize it, and in the end, if you want to seek help from the government, the government denies involvement, and if you seek help from individuals, they operate under the guise of the government and national debt, intentionally creating ambiguity.”
It is worth noting that as early as December 1999, the Shaanxi Provincial Government revoked 13 national debt service agencies under the Xi’an Municipal Finance Bureau, but retained the Jingwei National Debt Service Department for normal operation. Many victims revealed that the employees there were relatives of Finance Bureau officials.
Gaofeng said, “The personnel of the Jingwei National Debt Service Department are related to them (Finance Bureau). Over the past thirty years, there have been several crackdowns on illegal fundraising, but they have never been shut down. In essence, it uses the banner of the state to absorb social funds and engage in fraudulent fundraising.”
In April and May of this year, hundreds of Jingwei national debt victims continued to protest and demand payment by demonstrating in front of the Xi’an Beilin District Finance Bureau and the Xi’an Municipal Government offices.
A rights activist previously told Dajiyuan that many police officers were dispatched on-site to maintain order, and during the rights protection process, investors were arrested. One lawyer who was standing up for their rights was also arrested. After a hunger strike protest, he was released five days later.
Gaofeng mentioned that protecting rights is extremely difficult, the voices of victims are suppressed by stability maintenance measures, and they cannot reach the top levels of the Chinese Communist Party and receive widespread public attention. “The entire hierarchy of officials, prosecutors, law enforcement, and criminals are colluding. Without removing the dictatorial system, there will be no peace for the country or the people.”