Saturday 3 January 2009

Widespread Misuse of Quake Funds Uncovered

The National Audit Office’s latest probe has uncovered billions of yuan in improperly used funding and materials earmarked for the May 12 disaster relief efforts.

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Widespread Misuse of Quake Funds Uncovered

Woods Lee
3 January 2009

The National Audit Office’s latest probe has uncovered billions of yuan in improperly used funding and materials earmarked for the May 12 disaster relief efforts.

In a statement on its website, the office said 162 people involved in the cases had been either subject to administrative, judicial or party discipline, or they faced further investigation. It said the major irregularities included overstated property losses, misappropriation of disaster relief funds, slow funding distribution and deception in procuring materials and equipment.

Two of the biggest offenders were the Chongzhou Tourism Bureau and the Chongzhou Transport Bureau in Sichuan province, which overstated property losses in the earthquake by a combined 1.23 billion yuan (HK$1.4 billion).

Meanwhile, in Gansu province, the Tianshui city government reported a higher number of families in extreme difficulty than the final tally collected from each county and village.

Funds donated by the public or distributed by government departments moved very slowly before reaching victims, the office said.

By September, 40.25 per cent of the 460 million yuan allotted by the Shaanxi provincial government to disaster-hit counties had not been distributed to quake victims, it said.

In Ankang, Shaanxi, the city government had not distributed 98.38 per cent of the 44.76 million yuan in disaster relief funding allocated by the provincial government.

In Mao county, Sichuan, families of the county’s 3,862 casualties in the earthquake had not received promised “solace” funds by September 20, more than four months after the disaster. Some funds for immediate disaster relief were appropriated for other purposes.

The Longnan Transport Bureau in Gansu used 49,600 yuan worth of disaster relief funding for staff bonuses and welfare payments. And the Communist Youth League of Gansu used 860,000 yuan in public donations and disaster relief allocations to pay administrative costs.

Just back from a 10-day trip to the quake-hit areas, Tan Zuoren, of the non-government environmental protection group Green River, said complaints and resentment about unfairness and lack of transparency in the use of disaster relief funds and materials were rife among residents.

“Every day that we stayed in quake-hit counties and villages, dozens of people came to us, complaining of unfairness in funding and material distribution,” Mr. Tan said.

“People complained that cadres picked out the best of the donated clothes and quilts first, and sometimes adults were given children’s clothes.

“Without complete transparency and a unified and constant supervision by a central government institution, these irregularities by grass-roots governments are almost impossible to clear up.”