The nation's top auditor said Wednesday that embezzled or
misappropriated central government funds cost taxpayers nearly 7
billion yuan (US$919 million) last year, while more than 37 billion
yuan (US$4.86 billion) was poorly managed.
In his annual audit report to the country's top legislature,
Auditor-General Li Jinhua accused 56 central government departments
of misappropriating 1.52 billion yuan (US$200 million); and 434
subordinate units of 5.35 billion yuan (US$700 million).
Li said the National Audit Office (NAO) had also found
"managerial irregularities" involving 37.28 billion yuan (US$4.9
billion) in central budgetary funds.
Another 2.73 billion yuan (US$360 million) was squandered or
wasted, he said while reporting to the Standing Committee of the
National People's Congress.
Eleven central departments were named as violators, including
the ministries of education, health, the State Environmental
Protection Administration, the General Administration of Press and
Publication, the State Tobacco Monopoly Administration and the
State Information Center.
In particular, 92 subordinate agencies of 25 central departments
including the Ministry of Culture and the National Development and
Reform Commission, were blamed for misappropriating 2.75 billion
yuan (US$361 million), accounting for 40 percent of the total
misused money.
Figures released yesterday show that 28 officials have been
detained in cases relating to last year.
For problems reported last June, 177 people have been penalized
and 94 arrested, prosecuted or sentenced.
Misused State funds in 2004 and 2005 were 9.06 billion yuan
(US$1.18 billion) and 5.51 billion yuan (US$720 million), according
to the NAO.
Probes in 29 provinces revealed a total of 7.1 billion yuan
(US$930 million) of misappropriated social securities funds.
Li said central government departments have become more adept at
handling budgets, but more reform measures are needed to better
manage budgetary allocations.
It is also necessary to better manage and supervise the social
security funds, he noted.
Li has made a name for his courage to air the government's dirty
laundry in public. Every summer since 1999, his audience has been
eagerly awaiting the "audit storm" when he reports to the
legislature.
Major audit rule violations
The Ministry of Finance failed to return 17.4 billion yuan
(US$2.3 billion) of untapped project funds to the central
budget.
19 central departments, including the Ministry of Education and
the State Tobacco Monopoly Administration, were involved in
budgetary irregularities worth 19 billion yuan (US$2.5
billion).
33 departments, including the South-to-North Water Diversion
Office and the General Administration of Customs, misappropriated
859 million yuan (US$113 million).
15 departments, including the All-China Federation of Supply and
Marketing Cooperatives and the Press and Publication
Administration, misappropriated 394 million yuan (US$51.7 million)
by hiding revenue or fabricating expenditure.
92 agencies under 25 central departments, including the Ministry
of Culture and the State Development and Reform Commission,
misappropriated 2.75 billion yuan (US$361 million).
50 agencies under 13 departments, such as the Ministry of Water
Resources, were involved in improper investment of 2.28 billion
yuan (US$300 million).
Five agencies under four departments, including the General
Administration of Civil Aviation and the Ministry of Information
Industry, misused 1.74 billion yuan (US$228 million) by inflating
budgets.
33 agencies under 23 departments, including the Ministry of
Labour and Social Security and the State Electricity Regulatory
Commission, illegally made 591 million yuan (US$78 million) by
hiding income or fabricating expenditures.
(China Daily June 28, 2007)