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The cabinet, in an unusually tough message, has warned regional officials that any attempt to dilute the effects of macro-economic policies would not be tolerated.

At an executive meeting chaired by Premier Wen Jiabao yesterday, the State Council sternly reprimanded top officials in the Inner Mongolia Autonomous Region for their role in an unauthorized project which caused fatal accidents.

The region's chairman, Yang Jing, and vice-chairmen Yue Fuhong and Zhao Shuanglian, were ordered to write self-criticisms to the State Council.

The illegal project was Xinfeng Power Plant with an investment of 2.88 billion yuan (US$$350 million) designed to consist of two coal-burning generators with a capacity of 300,000 kilowatts each. Construction started in April 2004 without requisite approvals.

The State Council's tough stance comes amidst Beijing's intensified efforts to curb excessive growth in fixed asset investment to avoid an overheated economy.

The government of the Inner Mongolia Autonomous Region was criticized for failing to implement the central government's macro-economic control measures, according to the Xinhua News Agency.

An investigation by the National Development and Reform Commission and the Ministry of Supervision found a multitude of irregularities in the project.

Seven other officials were also disciplined, and another two face prosecution.

On July 8 last year, an ill-advised decision to speed up the unauthorized project led to the collapse of one of its main structures and the deaths of six workers. Eight were injured.

"The investigation found that local government departments and enterprises exceeded their authority in approving the project. They illegally approved land use, filed false reports and did not follow proper bidding procedures," Xinhua said.

Construction of the power plant continued even after State departments deemed it illegal and ordered a stop.

It is a typical example of ignoring laws and procedures that has grave consequences, the report said.

The regional government was also accused of approving the construction of other power plants with a generation capacity of 8.6 million kilowatts in violation of rules.

The cabinet meeting ordered a halt to construction of all the illegal power plants in the region, the report said, and asked all local governments and departments to learn a lesson from the incident and implement all macro-economic control measures.

"Anyone who disobeys the orders will be held accountable," the meeting warned.

This is the latest call from the central government to tighten macro-economic controls over the country's blistering economy, which recorded a growth of 10.9 percent in the first half of this year.

In another development, four major power-generating companies were among a large number of big corporations which have been penalized by the organization in charge of enterprises under central government control.

Datang, Huadian, Zhongdian and the State Grid Corporation paid out large amounts of unauthorized housing allowances, Li Rongrong, minister of the State Administration of State-owned Assets Commission, said on Tuesday.

(China Daily August 17, 2006)