Auditors reveal misuse of quake project funds
By Feng Jianmin |
June 18, 2011, Saturday
|
Print Edition
Print Edition
A REVIEW of reconstruction projects after the 2008 earthquake in Sichuan Province has revealed the misuse of 188 million yuan (US$29 million).
Between June and November last year, the National Audit Office examined the books relating to 1,404 projects worth 113 billion yuan in 20 cities.
Most homes, schools and hospitals had been rebuilt and the operation of most towns and cities restored, it said.
But 36 projects, 16 construction firms and 11 regulatory bodies were found to have violated regulations, and several government officials and people in charge of construction projects were arrested for bribery and violating construction standards.
All the units involved had been informed of the problems and had taken corrective measures, the office said.
"The questionable amount of money counted for less than 2 percent of the total investment, but the reconstruction is a big issue and all relevant bodies should be cautious not to break regulations," said the audit office's Xu Aisheng.
Some of the projects were carried out before approval was granted over environmental and land issues, and some bidding procedures were not sufficiently transparent.
A total of 273 million yuan of over-budget investment was made due to insufficient planning, random expansion and excessive payments, and another 188 million yuan was misused.
The audit office highlighted two examples in its report.
It said the government of northwest Gansu Province's Wenxian County misused 80.83 million yuan by making interest-free loans to companies involved in manufacturing and agriculture.
Meanwhile, a home-building project in the same county was given to an unqualified construction team led by Sang Fanrong. Sang's team used unapproved cement and concrete, and violated standards for home construction.
Of the 52 homes Sang built, 43 were found with quality faults after completion and had to be demolished at the local government's expense. The houses will also be rebuilt using government money.
Some government officials were removed from their posts while Sang and several other officials were arrested over charges including bribery, the audit office said.
Since September 2008, more than 7,000 auditing teams have been set out to inspect a total of 22,500 post-quake reconstruction projects worth more than 690 billion yuan.
The National Audit Office will conduct final auditing on completed projects this year, and will inspect the use of follow-up funds for the development of devastated areas.
Earlier this month, the audit office said that three officials in a Sichuan Province county have been removed from their posts over the misuse of 81.68 million yuan of reconstruction funds and the construction of an illegal real estate project.
They were Huang Haiyan, deputy chief of the Santai County government office, He Yong, director of the local water authority and Tu Qingguo, deputy director of the same local water authority.
Between June and November last year, the National Audit Office examined the books relating to 1,404 projects worth 113 billion yuan in 20 cities.
Most homes, schools and hospitals had been rebuilt and the operation of most towns and cities restored, it said.
But 36 projects, 16 construction firms and 11 regulatory bodies were found to have violated regulations, and several government officials and people in charge of construction projects were arrested for bribery and violating construction standards.
All the units involved had been informed of the problems and had taken corrective measures, the office said.
"The questionable amount of money counted for less than 2 percent of the total investment, but the reconstruction is a big issue and all relevant bodies should be cautious not to break regulations," said the audit office's Xu Aisheng.
Some of the projects were carried out before approval was granted over environmental and land issues, and some bidding procedures were not sufficiently transparent.
A total of 273 million yuan of over-budget investment was made due to insufficient planning, random expansion and excessive payments, and another 188 million yuan was misused.
The audit office highlighted two examples in its report.
It said the government of northwest Gansu Province's Wenxian County misused 80.83 million yuan by making interest-free loans to companies involved in manufacturing and agriculture.
Meanwhile, a home-building project in the same county was given to an unqualified construction team led by Sang Fanrong. Sang's team used unapproved cement and concrete, and violated standards for home construction.
Of the 52 homes Sang built, 43 were found with quality faults after completion and had to be demolished at the local government's expense. The houses will also be rebuilt using government money.
Some government officials were removed from their posts while Sang and several other officials were arrested over charges including bribery, the audit office said.
Since September 2008, more than 7,000 auditing teams have been set out to inspect a total of 22,500 post-quake reconstruction projects worth more than 690 billion yuan.
The National Audit Office will conduct final auditing on completed projects this year, and will inspect the use of follow-up funds for the development of devastated areas.
Earlier this month, the audit office said that three officials in a Sichuan Province county have been removed from their posts over the misuse of 81.68 million yuan of reconstruction funds and the construction of an illegal real estate project.
They were Huang Haiyan, deputy chief of the Santai County government office, He Yong, director of the local water authority and Tu Qingguo, deputy director of the same local water authority.
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