Yunnan local governments misused 41.11 million yuan (US$4.97 million) that ought to be used for earthquake victims and relief, an auditing report says.

According to the report of National Audit Office, among the problems discovered, the local governments failed to distribute relief fund timely or cheated for funds by submitting false reports about reconstruction projects.

Two devastating earthquakes, measuring 6.2 and 6.1 on the Richter scale respectively, jolted eight local counties including Dayao on July 21 and October 16 of 2003. After the disasters, the central and local governments allocated a total of 366.62 million yuan (US$44.29 million) for the relief and reconstruction operations, including 120 million yuan (US$14.49 million) in central government subsidies for big disasters

Some provincial and county departments appropriated 41.11 million yuan of relief fund for other uses.

In addition, the auditors also found local governments obtained 8.68 million yuan (US$1.05 million) by falsifying projects. Some local officials abused their power, embezzling rescue funds to build luxury house or distributing fund to their relatives.

It is revealed in the report that the problems in the utilization of the rescue funds have been solved and the officials involved have been investigated for their behaviors.

(Xinhua News Agency March 29, 2005)