A senior Chinese official with the Communist Party of China (CPC) has warned local governments and officials against fraud and corruption when working on projects funded by the country's 4-trillion-yuan economic stimulus package, the China Youth Daily reported Saturday.

Massive investments in infrastructure and social projects, aimed at increasing domestic demand, are a "major, pressing and serious issue in terms of ensuring project quality, work safety and the security of officials," said Zheng Xinli, deputy director of the Policy and Research Office of the CPC Central Committee.

The term "security of officials" refers to preventing corruption and disgrace.

"Government officials should act in strict accordance with the law and regulations, rather than practice fraud," Zheng, also vice director of the Committee for Economic Affairs of the Chinese People's Political Consultative Conference, was cited as saying. "Otherwise, officials will step down even before the projects are finished."

Yang Min, director of the legal affairs department at the Ministry of Finance, said from 1998 to 2006 China's governmental purchasing had an average annual growth of 6.8 billion yuan (1 billion U.S. dollars).

The volume of government purchases nationwide in 2006 reached 368 billion yuan (54 billion U.S. dollars), accounting for 1.8 percent of the gross domestic production value.

Zheng said the scale of government purchasing should be expanded. He also said governments should act according to the Law on Tenders and Bids and the Government Procurement Law to eliminate officials' opportunities to violate rules.

The Communist Party of China Central Commission for Discipline Inspection(CCDI) also vowed to put government-funded projects under scrutiny. The CCDI deputy secretary He Yong said on Thursday, rules to regulate business activities and officials' work would be issued as soon as possible.

On Monday, the CCDI issued a joint statement with the National Development and Reform Commission (NDRC), the Ministry of Supervision, the Ministry of Finance and the National Audit Office saying the groups would ensure close supervision of the stimulus package.

(Xinhua News Agency December 1, 2008)