Relief fund cheating uncovered

Source: Xinhua  |   2008-6-13  |     NEWSPAPER EDITION

CHINA'S auditing authority has so far found three cases of the illegal use of quake relief funds involving nearly 300,000 yuan (US$43,478).

The findings were published on the Website of the National Audit Office (NAO) as the first document about audit results involving relief funds for regions hit by the massive earthquake in southwestern China exactly a month ago.

The NAO said malpractice was found in a local office of the All-China Federation of Industry and Commerce and a branch of the Industrial and Commercial Bank of China in Mianyang, one of the worst-hit areas.

The local non-governmental industry and commerce association in Anyang, Henan Province, was found to have used 271,100 yuan from donations without authorization to buy relief goods. About 41,500 yuan was spent on apparel purchased from the younger brother of an ACFIC official and fake invoices were presented. Auditors discovered cast-offs among a batch of clothes dispatched by the official. The NAO said it had brought in the public security departments to investigate and some bank accounts had been frozen.