Lanzhou Public Transport Owes Salaries, Inciting Employees to Borrow Money to Pay Themselves

On September 10, Lanzhou Public Transport Group Co., Ltd issued a notice instigating employees to borrow money to pay their salaries, and the incident was exposed on social media and led to a lively discussion among netizens.

 On 8 September 2022, the notice shows that Lanzhou Rural Commercial Bank presented a new loan product for easy pay loans called “Jincheng E-loan” which is used to solve unpaid wages issues since June this year. It is designed as an exclusive, customized loan that is co-guaranteed by the company, assumes monthly interest payments, and guarantees the repayment of the principle. Some family members of employees said that this is instigating employees to take out their loans to pay themselves.

 According to media reports, on the same day, an employee from Lanzhou Public Transport Group confirmed that the notice is true. He also added that from 2020, the company’s revenues will no longer be able to cover its costs, and cannot maintain its normal business operations due to various factors. The company had more than 8,000 employees with a total debt of 3.9 billion yuan by the end of August, not to mention wages and social security funds were about 500 million yuan. The company’s debt ratio is 72%, and it is impossible to apply for a loan.

 Analysts said that such incidents are everywhere and increasing as the Chinese Communist Party (CCP)’s economy continues to collapse. In addition, along with Western countries’ sanctions against the CCP in the technology sector, the people inside China are facing internal and external hardships that will make their situations harder and harder.

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