Ministry denies 5m yuan debt to Moutai

The Ministry of Civil Affairs has denied speculation that it owes 5 million yuan ($768,000) to Moutai, the Guizhou-based producer of the State banquet liquor, after the company's annual report was posted online.

"The money is the company's donation for the Sichuan earthquake in 2008 and the ministry received it," Feng Yaping, deputy finance director of the ministry, said to financial news website caijing.com.cn Thursday.
 
He added there had been a delay in the mailing of the invoice for the donation, giving the impression in its annual report that the ministry owed it money.

Feng Jianmei, the director of the ministry's Charity and Donation Information Center, said the delay was because they had been busy handling donations after the earthquake.

"We mail the invoice only if the donor asks for it," Feng told the Global Times Thursday.

Feng Yaping said the company had not asked for the invoice before their annual report was made, adding that the ministry mailed the invoice this March and the company had received it, according to caijing.com.cn.

Moutai company confirmed Feng's claims Thursday.

The incident came after Moutai's annual report for 2010 was posted on Sina microblog Wednesday.
 
On a list in the report marked "outstanding bills," two government departments were shown to be in the top five units that owed the company.

The Guizhou Department of Labor and Social Security owed the company over 4 million yuan, China News Service said Thursday.

Many people asked if the departments had used taxpayers' money to buy the luxury liquor.

Global Times inquiries to the Guizhou department Thursday went unanswered.
Moutai said to sina.com.cn Thursday that it laid the 4 million yuan as an advance deposit for migrant worker wages.

An insider revealed that the Guangdong branch of State-run petroleum giant Sinopec had spent 1.68 million yuan on luxury wines, including Moutai, on April 11.

Following an investigation, the branch said the wine had been bought for private use by a general manager who had since been removed from duty.

However, most people remained skeptical about the conclusion, the Beijing News said earlier this month.