TV program probes relief funds
By Xu Chi |
May 30, 2011, Monday
|
Print Edition
Print Edition
RELIEF funds amounting to 90 million yuan (US$13.8 million) issued to Sichuan Province's Santai County government were transferred to a subordinate company which last year declared profits of 100 million yuan, a CCTV program has reported.
The funds were used in construction projects in the county which residents complained were being built in contravention of the law and on land at risk from flooding.
Residents said workers were building residential buildings, restaurants, teahouses and a large entertainment park along the course of the Fujiang River, a tributary of the Yangtze River.
In 1981 and 1998, two floods destroyed 2,000 houses and cost economic losses reaching 98.64 million yuan.
To prevent flooding in the county, flood control dams have been built along the river course. With memories of the floods still present in residents' minds, they complain that construction work is taking place right beside the dams and on the river course.
"They have been carrying out the construction work for at least three years," a resident told CCTV. "If the flood comes again, people in those buildings don't have a chance."
According to Chinese law, it is illegal to build in river courses.
An investigation into the construction showed that the buildings were projects of a real estate company, Shanxin Co, which belongs to Hongda Co, a subordinate company of Santai County.
Although the construction work in the river course didn't have any permission from supervising authorities, the local government had allowed it, according to the news program.
An investigation into the two companies showed that in April 2010, Hongda Co had a 90 million yuan increase in its registered funds, money issued as relief funds by the central government.
Yi Fengqiong, manager of Hongda Co, told CCTV that the company made a profit of 100 million yuan last year.
It was not known whether the county government had benefited from its subordinate company's annual income.
The funds were used in construction projects in the county which residents complained were being built in contravention of the law and on land at risk from flooding.
Residents said workers were building residential buildings, restaurants, teahouses and a large entertainment park along the course of the Fujiang River, a tributary of the Yangtze River.
In 1981 and 1998, two floods destroyed 2,000 houses and cost economic losses reaching 98.64 million yuan.
To prevent flooding in the county, flood control dams have been built along the river course. With memories of the floods still present in residents' minds, they complain that construction work is taking place right beside the dams and on the river course.
"They have been carrying out the construction work for at least three years," a resident told CCTV. "If the flood comes again, people in those buildings don't have a chance."
According to Chinese law, it is illegal to build in river courses.
An investigation into the construction showed that the buildings were projects of a real estate company, Shanxin Co, which belongs to Hongda Co, a subordinate company of Santai County.
Although the construction work in the river course didn't have any permission from supervising authorities, the local government had allowed it, according to the news program.
An investigation into the two companies showed that in April 2010, Hongda Co had a 90 million yuan increase in its registered funds, money issued as relief funds by the central government.
Yi Fengqiong, manager of Hongda Co, told CCTV that the company made a profit of 100 million yuan last year.
It was not known whether the county government had benefited from its subordinate company's annual income.
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