Ministries and commissions of the State Council that were found
by the National Audit Office (NAO) to have misused public
funds are undergoing further investigation, according to the
Ministry of Supervision. Some have already been severely
penalized.
According to the report Auditor-General Li Jinhua submitted to
the national legislature on June 23, 41 ministries and commissions
misused as much as 1.4 billion yuan (US$171.6 million), much of it
dedicated to building residences or offices for their own use.
"Twenty-four of the cases uncovered by the auditors have been
investigated and dealt with by the supervision departments over the
past year," said an unnamed official with the Ministry of
Supervision. Suspects involved in major cases have been
arrested.
In one case, Feng Mingchang, a private entrepreneur in Guangdong
Province, defrauded the Industrial and Commercial Bank of China
(ICBC) of billions of yuan in loans. Bank and government staffers
assisted Feng.
Together with Feng, Ye Jiasheng, former deputy governor of
ICBC's Guangdong branch, Lin Junjiang, former governor of the
Foshan branch, and other suspects including local government
officials have been arrested.
Supervision departments also investigated an embezzlement and
bribery case involving Liu Jinbao, former vice chairman of the Bank
of China. Prosecutors are now looking into the case.
Lin Kongxing, former general manager of the Huazhong Power
Group, is suspected of taking bribes and embezzling about 1 million
yuan (US$120,000). Lin and his wife have been handed over to
prosecutors.
The General Administration of Sport is also under investigation
in connection with an embezzlement case uncovered by the NAO.
(China Daily July 12, 2004)