China's National Audit Office (NAO) found that funds totaling
9.06 billion yuan (US$1.1 billion) had been misused in 38
government departments in 2004.
???
The amount represents six percent of all the funds audited, NAO
auditor-general Li Jinghua said in Beijing on Tuesday when
delivering a report on the central budget in 2004, and auditing
results work of other fiscal revenues and expenditures to the
Standing Committee of the National People's Congress, China's top
legislator.
???
Auditors found that 12 departments obtained from the central
government an additional 491 million yuan (59 million dollars) in
budgeted funds through inappropriate means such as adding staff to
payrolls, submitting proposals for non-existent projects, and
randomly raising budget standards.
???
Li said that 26 departments misappropriated funds totaling 1.07
billion yuan (US$129 million) and 14 others wrongly transferred
funds totaling 935 million yuan (US$113 million) to their
subordinate departments or other relevant organizations.
???
Other malpractices, according to Li, included putting away funds in
"small exchequers" and misusing funds earmarked for specific
projects.
???
Some government departments even diverted funds originally budgeted
for special projects into building homes and offices for personal
gain, he added.
???
By August of last year, the State Reserves Administration had
reserve materials totaling 1.4 billion yuan (US$169 million) that
had been borrowed out before 1994 but not returned, according to
the report.
???
By the end of 2004, China had appropriated 266 million yuan (US$32
million) in reserve funds for the purchase of Chinese medicinal
herbs, 227 million yuan (US$27 million) of which either went
missing or was misappropriated.
(Xinhua News Agency June 29, 2005)