China Probes 14 Officials Over $13.7M Farmland Scandal

Henan Province’s Sheqi County has launched accountability proceedings against 14 officials following an investigation into a nearly 100 million yuan ($13.7 million) high-standard farmland improvement project that was allegedly split into approximately 100 sub-projects and illegally subcontracted through a lottery-like system, according to The Paper.

Background

The project, located in Zhuji Town, Sheqi County, was tendered in 2019 and constructed over a 365-day period ending in 2020. It was designed to upgrade irrigation infrastructure across the county’s 121 million mu (approximately 80,700 hectares) of arable land, serving a county that ranks as a national grain-producing hub with a population of roughly 540,000.

Despite receiving a “basically qualified” certification from Nanyang City in January 2021, an investigative report published July 8 by Phoenix News / Dafeng News revealed that much of the infrastructure was non-functional or never properly installed.

Key Developments

According to the investigation, the project was won by Henan Guangyu Construction Group Co., Ltd. with a bid of 96.157 million yuan. However, an individual surnamed Tian allegedly borrowed Guangyu’s qualifications to take control of the project. Tian then split the contract into approximately 100 sub-projects and assembled construction teams at a makeshift office on Zhuji Town’s main street, where sub-projects were allocated by drawing lots.

Some construction foremen paid bribes to secure work. One foreman named Zhang told investigators he paid 105,000 yuan to buy a sub-project, stating, “Every construction section requires connections and money, it’s just a matter of how much.”

Guangyu Company representative Lian claimed the project was forced onto Tian by local officials: “After we won the bid, the project was assigned to Tian by a certain Sheqi County leader. Local pressure was overwhelming. The government has always done things this way. We had no choice.”

Infrastructure Failures

Journalists who inspected 12 pumping stations found only one functional. Many lacked pumps, pipes, or power connections. Some electricity meters showed as little as 1 kWh of total usage, suggesting they had never been used. One villager in Lianzhuang Village told reporters: “We’ve reported it too many times. Such expensive water towers and pumping stations have been sitting there for years, unusable.”

Local police received over 90 reports of stolen pumps and cables between 2020 and 2026, though the number of missing pumps — approximately 20 — exceeded the 11 formally reported pump thefts.

Accountability Measures

On July 9, Sheqi County’s joint task force announced that 14 officials face disciplinary accountability, two criminal suspects have been detained, and emergency repairs have been completed on 8 pumping stations and 6 large-diameter wells, as reported by Jimu News.

Analysis

The scandal connects to the broader 2026 nationwide anti-corruption campaign targeting high-standard farmland construction. In January 2026, the 20th Central Commission for Discipline Inspection identified farmland construction as one of four key areas for nationwide rectification.

Hu Lei, Director of the Property Defense Research Center at Beijing Zeheng Law Firm, said the case constitutes illegal affiliation and dismemberment-style illegal subcontracting, violating China’s Construction Law and Bidding Law. “Tian borrowed Guangyu’s qualifications to win the bid — this is illegal affiliation. After taking the project, he split it into dozens of sub-projects and used lot-drawing and paid-bid methods to assign them to unrelated construction teams — this is typical dismemberment subcontracting.”

The scandal is also linked to the downfall of former Sheqi County Party Secretary Yu Guangdong, who was expelled from the Party on May 13, 2026 for serious disciplinary violations, including using his position to benefit others in project contracting.

What’s Next

The case raises significant questions about the extent of criminal liability for the 14 officials under investigation, whether contractor Tian will face prosecution, and whether this will trigger broader reforms in how China supervises high-standard farmland projects. As Henan — a major grain-producing province — remains a focus of anti-corruption efforts in agricultural infrastructure, the outcome of this investigation could set precedents for similar cases nationwide.