A Discussion On The Administrative And Legal Responsibility Of Financing Platform Companies’ Debts

There are divergent opinions about the attribution of debt responsibility of financing platform companies. According to the present official statistics, the debts of financing platform companies are differentiated, part of which belong to governmental debts and the government is responsible for them, while other parts don’t belong to governmental debts. There exists great hidden danger under this classification, so it is of disadvantage for realizing the process of the debts of financing platform companies from disorder to order. Though local governments claim to be willing to bear part of the debts, at the same time, they escape the debts that originally belong to them in various ways, which should not have been done by a responsible government. Making clear the responsibility property of the debts of financing platform companies and urging the government to take responsibility is not only a necessary route to solve the problem of local debt crisis, but also a proper means to construct a law-based government.From the author’s point of view after research, the government should take the administrative and legal responsibility of financing platform companies’ debts. The essence of financing platform companies’ debt financing is the government’s administrative supply. Where there is administration, there should be administrative and legal responsibility. Administrative and legal responsibility should not merely stay at the stage of administrative intervention, but should keep up with the payment of administrative development. As long as the companies are in accordance with the three elements of “administrative subject, administrative responsibilities and improper or illegal”, the government should take the administrative and legal responsibility of their administration. Payment of administration is of no exception. Through empirical research analysis, the author discovers that the concrete process of financing platform companies’ debt financing can be realized as that of the government’s financing to achieve its administrative supply purpose. Besides, the role of the government in the whole process meets the three principal elements of “administrative subject, administrative responsibilities and improper or illegal”. Therefore, the government is to take the administrative and legal responsibility of financing platform companies’ debts. During this discussion process, the author takes the debt financing of a construction and investment company in C in southeastern area as the research object, and explains in detail the payment of administrative essence of its projects based on this argument. The projects which include affordable housing construction, demolition, reconstruction of commercial housing construction, road construction, urban construction of CBD construction, “waterfront corridor” construction, etc are supported by x hundred million yuan raised through the issuance of bonds by the company. In the meantime, the author discusses the C city government is the actual controller of the company, and this kind of financing way is illegal.After being sure that the government is responsible for the debts of financing platform companies theoretically, the next step is to solve the problem that how the government should take the responsibility. The government should first promise to be responsible for the debts of financing platform companies, instead of escaping responsibilities with differentiating methods. On this basis, the government can take its responsibility by PPP projects and using local government bonds to replace financing platform companies’ debts.