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December 10, 2010

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US$10.2b public money 'misused' by officials

GOVERNMENT officials have "misused" more than 68.4 billion yuan (US$10.2 billion) of public money over the past 12 years, China's chief auditor said yesterday.

Misuses included "violation of disciplines and delinquency," said Liu Jiayi, head of the National Audit Office, unveiling the results of an audit of more than 410,000 officials since 1998.

Liu did not reveal when speaking in an interview with People's Daily how much of the cash had been embezzled, and what had been recouped or lost.

However, around 2 billion yuan of the total was related to bribe-taking and other corruption involving officials, according to the newpaper.

Other misuses could be the result of incompetence, where money was given to the wrong people and projects.

More than 16,000 officials - 4 percent of those audited - were punished by being sacked, demoted or subject to other disciplinary punishments.

Within this group, some 7,200 officials were put under investigation by the anti-corruption watchdog or jailed for involvement in bribery, fund embezzlement and other regularities, the auditor said.

In a separate statement, the National Audit Office also announced late Wednesday that it will start auditing all heads of provincial governments and ministry-level officials on a nationwide basis, after completing a 10-year trial.

Ministers audited

Under the pilot scheme, 151 provincial heads and ministers were audited, with a focus on their personal expenditure and government input in construction projects and land use, the top auditor said. No results of the trial were offered.

In 1999, China started to audit all county-level officials and heads of state-owned companies.

In 2005, the auditing campaign was extended to cover senior officials at various departments of provincial governments.

In the statement, the top auditor said that the auditing results will be a key tool in evaluating, promoting and awarding bonuses to government officials.

The audit will cover fiscal expenses, management of fixed assets and key investment projects, internal controls and management of subordinate firms, the auditor said.

In June, the audit office said it had uncovered more than 13 billion yuan of fiscal revenue wrongly rebated to companies and individuals by local governments.

The discovery was made following an 18-month fiscal revenue management review of 15 Chinese provinces and the cities of Dalian and Shenzhen.

In the review, the top auditor found that seven provincial-level governments and 59 at lower tiers had handed out money to firms and individuals as investment incentives.




 

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