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National Audit Office of the People’s Republic of China (CNAO) Announcement on the Audit Findings on Earthquake Relief Fund and Supplies of the Wenchu
2008-07-04日   Soure : :

National Audit Office of the People’s Republic of China (CNAO) Announcement on the Audit Findings on Earthquake Relief Fund and Supplies of the Wenchuan Earthquake

(No. 1)

June 12, 2008

                                                                

In compliance with the request of the Central Leading Group for Supervising and Examining Earthquake Relief Fund and Supplies to “punish quickly and severely the irregularities and illegalities in the management and use of earthquake relief fund and supplies” and to “investigate and punish the cases as soon as they are uncovered and openly expose them”, three cases of irregularities and illegalities concerning earthquake relief fund and supplies discovered so far are hereby announced as follows:

1.       The principal person of the Association of Industry and Commerce of Anyang County, Henan Province, spent, without authorization, 271,100 yuan of donated fund on relief supplies and is suspected of abusing power for personal gain.

In accordance with the reporting of the masses, the National Audit Office (CNAO), the Provincial Party Committee and the Provincial People’s Government of Henan conducted a joint audit investigation on the problem of the principal person of the Association of Industry and Commerce of Anyang County, Henan Province spending, without authorization, 271,100 yuan of donated fund on relief supplies and being suspected of abusing power for personal gain.

On May 15, 2008, the Association of Industry and Commerce of Anyang County, Henan Province and the Red Cross Society of Anyang County received from Henan Liyuan Coking and Chemical Co. and two other enterprises 600,000 yuan of donation for earthquake relief. Later, the principal person of the association, without the collective discussion and decision of the leading group of the association, spent 271,100 yuan of the donated fund on supplies. Of the sum, 179,500 yuan was personally spent by the principal person for garments, ham sausage, mineral water, instant noodles and cotton quilts. The purchased garments worth 41,500 yuan were all sold by Roman Garment Shop (whose business license had been revoked by the district sub-bureau of the Administrative Bureau of Industry and Commerce in July 2007) of Beiguan District, Anyang City whose legal person is a younger brother of the principal person. The sales receipt for the purchase is fake, so is the sales receipt for ham sausage bought from another shop. The above supplies were shipped on May 16 directly to the Red Cross Society of Guangyuan City, Sichuan Province by the principal person as agreed upon between the Provincial Red Cross Society of Henan and the Provincial Red Cross Society of Sichuan. A sample check of the supplies during the audit investigation discovered that some of the garments had been made to order for specific customers and some are used ones.

After the problem was found out, the Municipal Party Committee and Municipal People’s Government of Anyang attached great importance to it. At present, legal liabilities of those implicated in the matter are being investigated and fixed in accordance with the findings of the investigation, the request of the Provincial Party Committee and Provincial People’s Government of Henan and the law and discipline provisions.

2.       The Fucheng Sub-branch of Mianyang of the Industrial and Commercial Bank of China (ICBC) spent “special fund for earthquake relief” on famous-brand sport shoes for its staff.

On May 28, 2008, the Fucheng Sub-branch of Mianyang of the ICBC practiced fraud and changed the item in the sales receipt of 56 pairs of Nike sport shoes (worth 28,500 yuan) bought for its 56 staff members from “sport shoes” into “raincoats, rubber boots and umbrellas”. Later, the sub-branch reimbursed the expenses from the “special fund for earthquake relief” allocated by its superior branch (The Supplementary Circular on Related Matters in Financial Management during the Earthquake Relief Period issued by the Sichuan Brach of the ICBC stipulates that “special fund for earthquake relief” should be used to ensure the life security and basic living conditions of the staff and to maintain the assets and fund for keeping the branches in operation of the ICBC system in the disaster areas).

After the problem was found out, the sub-branch has returned the misappropriated “special fund for earthquake relief”.

3.       Suspected problems of acquiring money by cheating through mobile phone short messages in some localities.

After the Wenchuan earthquake occurred on May 12, there appeared bulk mobile phone short messages “urgently soliciting donations for the Sichuan earthquake” in some localities, urging that donations be remitted into designated bank accounts. After audit organs found the phenomenon, they collected, sorted out and checked these messages. On the one hand, they told relevant banks to take supervisory measures to prevent some people from swindling money in the name of donation for earthquake relief, on the other, based on the clues of the problem, they followed up the investigation. The investigation found that some people of the public had already remitted donations for earthquake relief into the bank accounts designated by the short messages. The audit departments have transferred these clues of problem to public security departments. At present, cases are put on file for investigation and prosecution and the involved bank accounts have been frozen.