A total of 41.11 million yuan (US$4.95 million) allocated in
southwest China's Yunnan
Province for earthquake relief projects has been embezzled or
misused by local officials, according to a report released in
Beijing recently.
The National Audit Office (NAO) assessment said a total of
366.62 million yuan (US$44.2 million) had been collected for Dayao
County, after it was hit by two quakes measuring 6.1 and 6.2 on the
Richter scale in 2003.
The scandal was revealed after checks on the fund's accounts in
2004 found that 12 local authorities at different levels and
hundreds of officials may have been involved in the scandal.
Financial, civil affairs, construction, education and health
departments from provincial to township level all took part,
according to the NAO report, which said that:
The state-owned Caohai Farm in Yaoan County misappropriated
17.48 million yuan (US$2.11 million) to pay compensation for land
requisitions;
Binchuan County's civil affairs bureau took 1.5 million yuan
(US$181,600) to erect a government building;
Two local hospitals misused 250,000 yuan (US$30,200) of relief
funds to build dorms; and
Two financial bureaus in Mouding and Yaoan counties embezzled
5.65 and 3.5 million yuan (US$684,000 and 423,000) to balance their
budgets in 2003.
Auditors also found that 51.74 million yuan (US$6.26 million) of
funds were not distributed to locals in time and that 8.68 million
yuan (US$1.05 million) was given on a false basis.
To date, local governments have been investigating the scandals
and 48 officials from Chuxiong Prefecture have been given
administrative penalties, said the report.?
(Xinhua News Agency May 10, 2005)