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Corruption and Mismanagement Blamed for the Centra
Date: 8/11/2007 7:50:55 AM Sender: ChinaScope
Corruption and Mismanagement Blamed for the Central Government＇s Loss of Funds

Thu, 08/09/2007 - 16:46 — LD

Li Jinhua, the Auditor General of China＇s National Audit Office, stated that in 2006 the central government had questionable losses in the amount of 12 billion yuan due to corruption and mismanagement.

The problems fall into two categories:[1]

"1. Violations of the law and of regulations. Examples include using fictitious line items, fictitious expenditures, and inflated numbers of people involved in order to obtain fiscal funds, or embezzling fiscal funds and other special project funds. Funds were transferred by such methods as concealing revenue and inflating expenditures. Fees were collected in violation of regulations or not in strict compliance with the regulations of non-tax revenue administration."

"2. Waste and loss of funds resulting from mistakes and mismanagement. Examples include poor management and enterprises under the central government transforming the rules when investing abroad."


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