China's state audit report for last year was made public yesterday and showed 9.06 billion yuan (US$1.1 billion) of misappropriated funds by government departments and 14.5 billion yuan by state companies.
The annual report, open to public scrutiny only since 2003, has formed the basis for investigations into graft, with the state press following up the report findings in what has come to be known as China's "audit storm."
The latest report detailed wide-ranging irregularities in the appropriations of 4.9 billion yuan for water project investment and 4.1 billion yuan for highway construction in rural areas.
Corruption in the education sector last year was also rife, with 868 million yuan worth of fees illegally collected by government-run universities and 669 million yuan in scientific research funds misappropriated, the report said.
Auditor general Li Jinhua handed the report to the National People's Congress on Tuesday.
"There are holes in the budget management system of some departments," Li told the congress.
"They make use of their funds to improperly make profits for themselves," he said.
The auditor general gave details of embezzlement and misuse of funds across the board, including the widespread use of slush funds and diverting government money into private bank accounts or subsidiary government-run companies.
Li also singled out the Ministry of Sports' handling of the nation's popular sports lottery, saying 558 million yuan in lottery profits were diverted to two subordinate companies who distributed some of the funds to staff as bonuses.
Li said that the sports ministry had "failed to correct its mistakes" after the 2003 audit report found that 109 million yuan earmarked for organizing the 2008 Beijing Olympic Games had been embezzled to build new apartments, Xinhua said.
Gross irregularities were also found among China's four state-run asset management companies although no details were immediately available.
China Huarong Asset Management Corp, China Great Wall Asset Management Corp, China Orient Asset Management Corp and China Cinda Asset Management Corp were set up in 1999 to help public banks get rid of their bad debts.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source