Chinese state auditors in 2003 discovered serious financial
malpractice in use of disaster relief funds, said Li Jinhua,
auditor-general of the National Audit Office (NAO) of China.
Li made the remarks Wednesday when delivering a report on use of
the central budget in 2003 to the Standing Committee of the
National People's Congress.
Investigations show that nine of the 14 flood-hit counties in
the Huaihe River Valley, which were in central China's Henan
Province and east China's Anhui and Jiangsu provinces, grafted 136
million yuan (US$16.4 million) from the disaster relief fund,
accounting for 19 percent of the compensation fund for house
reconstruction in the area.
Huoqiu County in Anhui Province embezzled 3.6 million yuan
(US$0.4 million) which should have been distributed to 1,804
households for house construction.
In Funan County of Anhui, 17 cadres from three towns pocketed
200,000 yuan (US$24,180) earmarked by the central government for
the resettlement of people in the flood discharge area.
The same problem was also found in southwest China's Yunnan
Province in earthquake relief, said Li.
Investigations show that by the end of March this year, the
central finance department had earmarked 120 million yuan (US$14.5
million) to earthquake-hit areas in Yunnan. But up to now, 51.74
million yuan (US$6.2 million) was still kept in the county finance.
Some departments even used the relief fund to balance the local
budget or build restaurants.
(Xinhua News Agency June 24, 2004)