Audit finds massive pilfering from projects
By Feng Jianmin |
June 19, 2012, Tuesday
|
Print Edition
Print Edition
EMBEZZLEMENT involving a total of 365 million yuan (US$57.9 million) and other irregularities were found in 133 projects partly financed by foreign loans or donations, the National Audit Office said yesterday.
Of that, 128 million yuan had been taken or misappropriated in six environmental protection projects by September 2011, while the other 237 million came from six projects overseen by central government entities in 2010, the auditor said in separate statements.
Other irregularities in land use, bidding, accounting and equipment management also were found in the projects.
"The management and execution of foreign-funded projects are generally well regulated due to strict selection of projects, regulated procurement on equipment, and high-quality project management," the auditor said. "But problems exist."
The auditor said the problems mainly fell in three categories - misuse of fund, loopholes in project management and irregularities in bookkeeping.
It attributed the cause of problems to the complicated levels of oversight, the frequent changes of personnel, the large areas and the huge amount of construction work involved in the projects.
The auditor inspected 34 environmental protection projects involving 14.1 billion yuan in foreign funding. Their total funding amounted to 34 billion yuan.
It also inspected 99 projects supervised by the central government in agriculture, energy, transport, education and urban construction. Of those, 34.5 billion yuan of their total 424.6 billion yuan budget came from foreign sources.
Besides money embezzlement, six of the environmental projects misused 540 hectares of land, and 13 projects involved accounting irregularities totaling 235 million yuan.
Eighteen of the central government projects were found to have violated rules in bidding, sourcing, equipment handling and planning, involving misused funds of 650 million yuan.
Another 20 projects were found breaking accounting and payment regulations, resulting in 1.18 billion yuan in irregularities.
The auditor said great attention has been paid toward resolving the problem.
"Individuals violating the rules and laws will be charged with administrative or criminal penalties," the auditor said.
All but 11 of the problematic projects had their problems resolved, officials said.
Of that, 128 million yuan had been taken or misappropriated in six environmental protection projects by September 2011, while the other 237 million came from six projects overseen by central government entities in 2010, the auditor said in separate statements.
Other irregularities in land use, bidding, accounting and equipment management also were found in the projects.
"The management and execution of foreign-funded projects are generally well regulated due to strict selection of projects, regulated procurement on equipment, and high-quality project management," the auditor said. "But problems exist."
The auditor said the problems mainly fell in three categories - misuse of fund, loopholes in project management and irregularities in bookkeeping.
It attributed the cause of problems to the complicated levels of oversight, the frequent changes of personnel, the large areas and the huge amount of construction work involved in the projects.
The auditor inspected 34 environmental protection projects involving 14.1 billion yuan in foreign funding. Their total funding amounted to 34 billion yuan.
It also inspected 99 projects supervised by the central government in agriculture, energy, transport, education and urban construction. Of those, 34.5 billion yuan of their total 424.6 billion yuan budget came from foreign sources.
Besides money embezzlement, six of the environmental projects misused 540 hectares of land, and 13 projects involved accounting irregularities totaling 235 million yuan.
Eighteen of the central government projects were found to have violated rules in bidding, sourcing, equipment handling and planning, involving misused funds of 650 million yuan.
Another 20 projects were found breaking accounting and payment regulations, resulting in 1.18 billion yuan in irregularities.
The auditor said great attention has been paid toward resolving the problem.
"Individuals violating the rules and laws will be charged with administrative or criminal penalties," the auditor said.
All but 11 of the problematic projects had their problems resolved, officials said.
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