Concerns over Red Cross budget
By Wang Qingchu |
June 28, 2011, Tuesday
|
Print Edition
Print Edition
CHINA'S Red Cross Society paid 4.2 million yuan (US$648,488) more than they should have for medical devices in 2010, the nation's top auditor has revealed.
It was one of several budget irregularities over the 2009-2010 period, the auditor said.
They were discovered after auditors went through the books for the Red Cross budget for 2010, the National Audit Office told a session of the National People's Congress in Beijing, the People's Daily reported yesterday.
It said that the Central Government Procurement Center had won a bid worth 12 million yuan to buy medical devices, details of which were not specified, for the Red Cross in December 2009.
However, the Red Cross later signed a contract for more than 16 million yuan with the CGPC, 4.2 million yuan over the bid price.
In another anomaly, at the end of 2009, 253,200 yuan was left unused in the budget of the stem cell management center in Beijing administered by the Red Cross. But the charitable organization failed to carry over the balance to 2010 and it didn't report the money to finance authorities.
The stem cell management center was also found to have listed 224,800 yuan in expenditure on unrelated items without the proper authorization during a project to build a database of donors.
The Red Cross also set aside 300,000 yuan for a training program in December 2010, but the training had not started as of early this year, the auditor found.
The auditor also said there were inconsistencies between the Red Cross's final account report and its account books.
The auditor's findings follow a recent scandal in which a 20-year-old woman claiming to be general manager of Red Cross Commerce flaunted her extravagant lifestyle online.
Guo Meimei showed off her sports cars, designer handbags and villas on her microblog, sparking many comments raising concerns about how the Red Cross was being run.
Although the Red Cross said Guo was not its employee, and Guo admitted she "faked the job identity due to ignorance," the incident still raised questions for many people.
It was one of several budget irregularities over the 2009-2010 period, the auditor said.
They were discovered after auditors went through the books for the Red Cross budget for 2010, the National Audit Office told a session of the National People's Congress in Beijing, the People's Daily reported yesterday.
It said that the Central Government Procurement Center had won a bid worth 12 million yuan to buy medical devices, details of which were not specified, for the Red Cross in December 2009.
However, the Red Cross later signed a contract for more than 16 million yuan with the CGPC, 4.2 million yuan over the bid price.
In another anomaly, at the end of 2009, 253,200 yuan was left unused in the budget of the stem cell management center in Beijing administered by the Red Cross. But the charitable organization failed to carry over the balance to 2010 and it didn't report the money to finance authorities.
The stem cell management center was also found to have listed 224,800 yuan in expenditure on unrelated items without the proper authorization during a project to build a database of donors.
The Red Cross also set aside 300,000 yuan for a training program in December 2010, but the training had not started as of early this year, the auditor found.
The auditor also said there were inconsistencies between the Red Cross's final account report and its account books.
The auditor's findings follow a recent scandal in which a 20-year-old woman claiming to be general manager of Red Cross Commerce flaunted her extravagant lifestyle online.
Guo Meimei showed off her sports cars, designer handbags and villas on her microblog, sparking many comments raising concerns about how the Red Cross was being run.
Although the Red Cross said Guo was not its employee, and Guo admitted she "faked the job identity due to ignorance," the incident still raised questions for many people.
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