Suppliers Allege Over a Million Yuan in Unpaid Bills from College Canteen Contractor, School Cites Proper Bidding Process and No Contractual Liability

Deep News07-09

Suppliers of goods like grain and oil to a university canteen are facing repeated delays in receiving their payments. Recently, some suppliers for the canteen at Yingtan Vocational Technical College reported to a media assistance column that the canteen's contractor, Jiangxi Dinghang Catering Service Co., Ltd. (hereinafter referred to as Dinghang Catering), owes approximately 1.526 million yuan in total to eight suppliers and has been slow to pay. The suppliers question whether the school failed in its oversight duties and bears some supervisory responsibility. In response, the school stated it has no contractual relationship with the suppliers and suggested they pursue legal avenues to protect their rights.

A supplier named Peng Xiaoying, the person in charge of Yingtan Yong Sheng Decoration Business Department, shared her experience. She stated that her business had been supplying the canteen since the school was established, with the previous contractor paying punctually before the 15th of each month without delay. However, after Dinghang Catering took over, payment delays began.

Dinghang Catering became the canteen contractor for Yingtan Vocational Technical College through a public bidding process in June 2023. That same year, Yong Sheng Decoration entered into a supply agreement with Dinghang Catering to provide grain and oil to the school's first canteen and teacher's canteen. Peng Xiaoying noted that payments were normal at first, but issues began to emerge in the first half of 2025. She said approximately 180,000 yuan for goods supplied from September 2024 to January 2025 remains unpaid.

According to a provided "First Canteen Eight Suppliers Arrears Agreement," as of January 20, 2025, Dinghang Catering and its Yingtan branch person in charge, Zhu Junfeng, collectively owed 1.526 million yuan to eight suppliers. One supplier, Hu Guifeng, is owed 950,000 yuan, the highest amount among them. She initially sought to protect her rights through legal channels but ultimately withdrew her lawsuit.

Hu Guifeng explained that withdrawing the lawsuit was a last resort. She feared that if the court froze Dinghang Catering's accounts due to the lawsuit, the company would be unable to use canteen operating profits to repay the debts as per their agreement. However, even after withdrawing the suit, she has still not received her payment.

The mentioned agreement stipulated that Zhu Junfeng and Dinghang Catering promised to repay the debts using the school canteen's monthly operating profits over three semesters (excluding winter and summer vacations), prioritizing payment for current-month supplies and distributing any remaining profits according to the proportion of each supplier's outstanding debt, with settlements occurring monthly.

"Dinghang Catering was brought in by the school, and with the school's backing, we naturally felt confident supplying goods to them on credit," said Hu Guifeng and Peng Xiaoying. They believe the school shares some management responsibility for Dinghang Catering's failure to pay.

School's Position: Bidding Process Was Proper, No Contractual Ties Mean No Liability

When contacted, Wan Liang, the former vice president in charge of logistics at Yingtan Vocational Technical College, addressed the suppliers' concerns. "We brought Dinghang Catering in through a proper bidding process; we did not appoint a specific contractor. What management responsibility does that entail?" he questioned.

Wan Liang stated that the school intervened upon learning of the payment delays and has engaged in multiple rounds of communication and coordination. However, he noted that the school could not meet some of the suppliers' requests.

"After discovering this issue, the school wanted Dinghang Catering to leave immediately. But the suppliers asked us not to bring in a new company. Instead, they hoped Dinghang Catering would continue operating at the school and use the profits to repay the debts. Who would dare to do something so irregular and potentially illegal?" he explained.

He also revealed that the repayment agreement between the suppliers and Dinghang Catering was reached through the school's mediation. Subsequently, the school has been disbursing the canteen's operating funds to Dinghang Catering on time each month, with supplier representatives present to oversee the entire process.

"All school affairs are handled according to laws and regulations. We have no contractual relationship with the suppliers. If they believe the school is responsible, they can seek to protect their rights through legal channels," Wan Liang stated.

Xia Yuming, the head of the college's Logistics and Industry Department, added, "The unpaid funds were misappropriated by the company." He explained that the college previously settled payments with Dinghang Catering on time each month through a campus card system, and it was the company's responsibility to pay the suppliers. There is no direct debt relationship between the college and the suppliers.

Xia Yuming detailed that Dinghang Catering entered the college in June 2023 with a three-year contract, signed annually. After the payment issue arose, the college should have requested its departure. However, at the unanimous request of the suppliers, Dinghang Catering continued operating for another year.

"The suppliers likely felt that pursuing legal action might not recover the money, so they compromised and withdrew the lawsuit, thinking they would supply for another year and at least earn that year's income first," Xia Yuming suggested. Now, as the one-year period agreed upon in the protocol is nearing its end, suppliers hope the college will allow Dinghang Catering to continue operating until all debts are cleared. However, the college needs to restart the public bidding process.

Xia Yuming also disclosed that Dinghang Catering currently owes the school around forty to fifty thousand yuan in unpaid water and electricity fees. The school has reported the matter to local public security authorities. The person in charge of Dinghang Catering's Yingtan branch has stated that the college can initiate legal proceedings to resolve the issue.

Attempts by reporters to contact Dinghang Catering and Zhu Junfeng by phone on July 2nd and 3rd were unsuccessful, with calls going unanswered. As of the time of writing, Dinghang Catering has not issued a response.

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