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Nearly 200 central government employees were punished or face judicial proceedings for misusing funds in the 2004 financial year, the nation's top legislative body said on Thursday.

The announcement follows last June's "audit storm," in which Auditor-General Li Jinhua revealed that 38 central government departments had misused almost 9.1 billion yuan (US$1.1 billion) in the financial year.

Xinhua yesterday quoted the Standing Committee of the National People's Congress as saying that 121 people had received administrative punishment and 76 were arrested, being prosecuted or convicted.

"Most of the departments were active in correcting their wrongdoings," said the standing committee in a report.

The embezzlement and misuse of funds spanned various departments and related to hospitals, universities, water projects, highway construction and scientific research.

The legislative body said the State Council has largely been dealing with problems involving university fees, hospital charges, use of scientific research funds, construction of irrigation and water treatment works and rural highway construction.

Li reported to the National People's Congress last year that there were gross irregularities in the business operations of the four major asset-management companies. However, there was no mention of corrective measures in Xinhua's report.

The four companies China Huarong Asset Management Corp, China Great Wall Asset Management Corp, China Orient Asset Management Corp and China Cinda Asset Management Corp were all set up in October 1999.

Li also reported last year that 1.6 billion yuan (US$190 million) was allegedly used in violation of the law by former top officials of 10 State-owned enterprises such as the State Development & Investment Corp.
 
(Xinhua News Agency March 3, 2006)