Report blasts government misuse of budgetary funds

According to a report released by China's top auditor, central government departments are responsible for the misappropriation of almost seven billion yuan (640 million euros) and the mismanagement of more than 37 billion yuan (3.36 billion euros) in 2006. All in all, 4.2 billion euros of government funds were squandered.

The annual audit report presented to the Standing Committee of the National People's Congress by head of the National Audit Office Li Jinhua concluded that 56 central government departments had misused 1.52 billion yuan (140 million euros). 434 organizations headed by them misappropriated 5.35 billion yuan (490 million euros).

Central government departments and their subordinate agencies had squandered 2.73 billion yuan (25´0 million euros), the report reveals. 92 agencies of 25 central departments, including the Ministry of Culture and the National Development and Reform Commission accounted for 40 percent of the total.

Three state departments - the State Environmental Protection Administration of China, the State Tobacco Monopoly Administration and the Civil Aviation Administration of China used 84.9 million yuan (7.72 million euros) on fabricated projects and falsified personnel expenses.

All in all, the audit revealed 17 cases of economic crimes including "inappropriate management," "violation of laws" and "waste." 28 people are under investigation and 94 people have already been arrested following the exposure.

Relevant departments have been ordered to rectify the budgetary problems. So far 18 departments have been able to sort out the fate of 10.75 billion yuan (980 million euros) of government funds.

According to Reuters, citizens' contempt for corrupt officials can spark unrest in the mainland and eventually reduce the Communist Party's credibility.

In conclusion, the auditor granted that compared to the previous year, the amount of money misused had dropped by 53 percent.

China's administrative departments have recently been involved in a number of grave scandals involving the misuse of government funds. A national audit has been conducted annually for the last few years.