Audit Findings of Disaster Relief Fund for the Earthquake-Hit
Dayao County, Yunnan Province
(Released on April 27, 2005 )
In order to strengthen the management of the earthquake disaster relief fund, increase the value for the utilization of this relief fund and improve the administrative system for the fund, from March 18, 2004 to April 30 of the same year, the National Audit Office of China had audited the earthquake relief fund for earthquake-hit Dayao county, Yunnan province on July 21 and on 0ctober 16 , 2003. The fund had been accepted and arranged by public finance at Yunnan provincial level, that at Chuxiong prefecture level and level of it s affiliated Dayao county, Yaoan county, Yong Ren county, Muding county, Yuan mou county, that at Dali prefecture level and the level of it s affiliated Bingchuan county, Xiangyun county, and public finance at Lijiang municipal level and at the level of it s affiliated Yongsheng county and Huaping county.
1. The Basic Situation
On July 21 and October 16, 2003, the earthquakes registering 6.2 and 6.1 on the richter scale had occurred successively in Dayao county Yunnan province. After the occurrences, the central committee of CCP and the State Council attached great importance to the disasters. Hu Jintao, General Secretary of CPC, Wen Jiabao, Premier of the State Council, and Hui Liangyu, Vice Premier, had time and again given written instructions on reports related to anti-earthquake, disaster relief and reconstruction work. The Ministry of Finance immediately allocated disaster relief funds. Ministry of Civil Affairs, Ministry of Constructions, State Bureau of Seismology and State Office of Flood Prevention had also for many times sent working teams to earthquake-hit areas where they had made investigations and found out the situations concerning the disasters and supported the local authorities in their emergency disaster relief and reconstruction work. In the course of anti-earthquake ,disaster relief work and reconstructions, the provincial committee of CCP, provincial government and it s functional departments in Yunnan province had vigorously raised disaster relief funds, gone down to the disaster-stricken areas where they had done a lot of hard jobs. Leaders at provincial , prefecture and county levels had for a number of times gone right to the front lines of the disaster-stricken areas ,given direct guidance and assistance on the spot in launching rescue work. The Yunnan provincial government and the governments at the prefecture and county levels ,the competent departments in the earthquake-affected areas had taken various measures and worked out corresponding administrative methods of relief funds and projects and played a positive role in strengthening the supervision over the administration of the disaster relief funds, upholding the social stability in the disaster-stricken areas and ensuring the basic life of the broad masses in the disaster-stricken areas. According to statistics, Yunnan provincial government , local governments at various levels and departments concerned had all together accepted the disaster relief funds totaling 366.62 million Yuan RMB(Chinese currency, hereafter, abbreviated as Yuan ) for the two earthquakes, among which 120 million Yuan had been from subsidies for the extraordinarily serious natural calamities supplied by the central authorities,27 million Yuan from within the central budget for infrastructure construction ,20.23 million Yuan from anti-poverty funds for different localities out of state bonds,15.69 million Yuan from special funds for disaster relief of central education ,10 million Yuan from subsidies for extraordinary serious flood prevention, 3 million Yuan from funds for health and epidemic prevention, 6 million Yuan from the funds allocated by Ministry of Communication for the damages to the highways by floods,2.13 million Yuan from the general headquarters of Red Cross Society of China , 139.76 million Yuan from the public financial funds of the governments at various levels in Yunnan province and 22.81 million Yuan from the disaster relief funds of other sources.
2. The Major Problems Found out by Audit
a) 51.74 million Yuan from subsidies for the extraordinarily serious natural calamities supplied by the central authorities had not been allocated on schedule. By November 14, 2003, a total of 120 million Yuan from the above-mentioned subsidies out of the central public finance had been allocated. Up till March 31, 2004, Yunnan provincial public finance department had allocated this amount of subsidies, but, 51.74 million Yuan had been held up at the public financial department at the county-level due to the fact that the Yunnan provincial anti-earthquake and disaster relief headquarters had not given an official, written reply on schedule to the October 16 plan related to the reconstructions.
b) reports on part of disaster relief projects had not been true to facts and as a result, 8.68 million Yuan of the fund for disaster relief construction projects had been obtained by cheating. It had been found out by selective audit check that those counties such as Da yao, Bingchuan, Yuanmou, Xiangyun, Yaoan Yongren and etc had submitted the claims on 21 construction projects which had been not available or already started with approval before the earthquake as reconstruction projects after the earthquake disaster and as a result, obtained 6.68 million Yuan. 4 projects which could be restored had been submitted as projects of reconstruction and 2 million Yuan had been obtained .For example, the construction project of the office building of the people s court of Dayao county had been approved by the county government ,however, after July 21 earthquake, the county authorities again submitted the claims on this project as one of the reconstruction projects, getting 2 million Yuan; the project of the general-purpose, 3-storey building of commune hospital at the front yard of the public health bureau of Yaoan county was completed in June of 2003,but , this county public health bureau submitted the application for this project again this time as reconstruction project, securing tow hundred thousand Yuan for reconstruction fund. The development and planning bureau of Dayao county submitted a report on the project of the detention house of the public security bureau of the county which could be consolidated and maintained as a project of reconstruction, gaining 8 hundred thousand Yuan for the reconstruction .The basic maintenance of the above-said project was finished in April of 2004 and it s contract price was only 1.796 hundred thousand Yuan..
c) 41.11 million Yuan of disaster relief funds had been squeezed and diverted for other purposes. This problem has existed in part of the department s of public finance, civil administration, construction, education, health and others at the provincial, prefecture (municipality) and county levels and the governments of towns and township. For example, the headquarters of the government rebuild project of Caohai Farm of Yaoan county had diverted 17.48 million Yuan of disaster relief funds to the purpose of the payment for the compensation for the land exchange. The civil administration bureau of Bingchuan county had diverted 1.50 million Yuan of disaster relief fund to the project of the building of the service centre of social welfare of the county. The public health bureau of Yaoan county and the Zhao Jiadian commune hospital of Dayao county had diverted 2.5 hundred thousand Yuan of disaster relief funds respectively to building living quarters for the staff and workers of the commune hospitals. The bureaus of public finance of Muding county and Yaoan county had diverted 5.65 and 3.50 million Yuan of disaster relief funds respectively to balancing their 2003 fiscal budgets.
d) The standards of construction of the two government rebuild projects at the county level had been on the high side. The qualifications of the admission to the living quarters had not been strictly guaranteed and it had been short of funds. The two government rebuild projects at the county level of Tanhua Songziyuan of Dayao county and of Caohai farm of Yaoan county had played a role to certain extent in overcoming difficulties the victims had had in having a living quarters, however, the standards of construction in the government rebuild projects had been on the high side. The standard for the construction cost per household had been close to one hundred thousand Yuan. As compared with the standards of the subsidies granted to the self-construction households of the masses in the disaster-stricken areas, there had been a wide gap. 470 flats in the two government rebuild projects could only have accommodated two percent of the masses in the disaster-stricken areas. It has been also found out by audit that the qualifications of the masses who would remove from disaster-stricken areas to the government rebuild projects of Songziyuan had not been strictly guaranteed. According to the selective audit check, out of the 40 households
that would remove from the disaster-stricken areas to the government rebuild projects according to plan, 20 households had not been qualified to be admitted in accordance with the criterions stipulated by the local government .Besides, in the course of the construction in the government rebuild project in Caohai farm of Yaoan county, there had been the problem of the shortage in funding. According to estimation, the amount of the fund of which the area had been short had been estimated to exceed 35 million Yuan. If the fund were not available on schedule, it would have impact on the construction speed of project.
e) Minority of cadres at the grass-root levels, abusing powers for personal advantages, had taken this opportunity to obtain high standards flats for themselves and relatives, or possess and spend the disaster relief funds .For example, the deputy head of Tan hua town of Dayao county, Li so-and -so ,through making a false report on situations concerning disasters, had strived to get the subsidy fund for self-construction house for two households and three high standards flats in the government rebuild project for 4 households who are all Li s relatives, totalling over two hundred thousand Yuan. The ex- assistant of civil administration of Tiesuo town of Dayao county, Li so-and so, from January to April of 2004 when auditing, had privately possessed and spent 29.5 thousand Yuan of disaster relief fund.
3. Situation concerning Audit Sanction and Recommendations
After audit, the National Audit Office of China, following State laws and stipulations of regulations, had issued the document of audit decision on schedule. Concerning the question of the subsidies of the extraordinarily serious natural calamities relief supplied by central authorities that had not yet allocated on schedule, it has required Yunnan provincial authorities to supervise and speed up the relevant counties to appropriate the funds to the victims in disaster-stricken areas within fixed times. With regard to the question of the construction funds of disaster relief projects, which had been obtained through submitting false reports on disaster relief projects, it had required Yunnan provincial authorities to be responsible for recovering the above-said funds and reallocate it for subsidizing the masses in the disaster-hit areas and to circulate note criticizing the related departments, and investigate and affix the responsibility of relevant personnel. In terms of the question of squeezing and diverting the disaster relief funds for other purposes, it had required Yunnan provincial authorities to recover the above-mentioned funds and suggested that Yunnan provincial authorities should investigate and affix responsibility of the relevant personnel according to the seriousness of it s case. Regarding the question of the construction standard s being on the high side in the government rebuild projects at the county level and of being short of fund and etc , it had required the Yunnan provincial authorities to make suggestions on rectification and submit report on the specific subject on the results of handling cases to the National Audit Office by correspondence. Concerning the question of the minority of cadres who had abused power for personal gains, taking opportunity to seek high standard flats for themselves and their relatives and possessed and utilized disaster relief funds, the National Audit Office would according to regulations turn them over to commissions for inspecting discipline, departments of supervisory and judicial organs for handling their cases. At the same time, it had suggested that Yunnan provincial authorities should further improve it s mechanism for disaster relief emergency administrative work; further establish and improve the mechanism for the scientific assessment of the losses brought about by disasters; complete disaster rescue system, properly handle the relations between disaster relief emergency, anti-poverty and development; make clear the principle of utilizing the disaster relief funds mainly for emergency purpose; strengthen the unified administration, allocation and the utilization of the disaster relief funds; earnestly distinguish the seriousness and emergency of different cases and stress the focal points; further improve the method of management of disaster relief funds and financial system, work out scientific and reasonable standards of disaster relief and improve supervisory system and that of investigating and affixing the responsibility for an accident.
4. Situation Concerning the Rectification of the Problems found out by Audit
After auditing earthquake disaster relief funds of Dayao county, Yunnan province by the National Audit Office of China, the provincial committee of CCP of Yunnan, provincial government, authorities of relevant prefectures and counties attached great importance to the audit findings and took immediately measures to vigorously launch rectifications.
The Yunnan provincial committee of CCP and the provincial government had convened respectively the standing committee meetings of both party and government, specifically studying the problems that had existed in the management and the use of earthquake disaster relief funds in Dayao county and the recommendations related to the rectification, and taken earnest and effective measures to put them into practice. The authorities of Yunnan province had sent 11 supervision working groups and 83 person-times successively and the Chu Xiong prefecture had sent 35 groups and 579 person-times. They had gone down to the front line of the disaster-stricken areas, implemented a village-based, self-management policy and made great efforts to rectify and solve the problems found out by audit.
At present, the problems of violation of regulations in allocating and utilizing Dayao earthquake disaster relief funds in Yunnan province have been basically rectified. The reconstruction work has come to the winding- up stage. The disaster relief funds that had been held up once at various counties have now all been allocated. The subsidy for the seriously disaster-stricken household has been increased by 1500 Yuan. The standards of subsidy given to the high standard government rebuild project has been decreased. At the same time, the authorities of Chuxiong prefecture has investigated and affixed the responsibility of 48 persons among whom 9 leaders at the county level have made written self-criticism; 28 cadres in the party and government have been punished according to party disciplinary rules and those of state administrative disciplines. The authorities of Dali prefecture has also investigated and affixed the responsibility of the major leaders of civil administrative and education bureaus of Bingzhou county.
In order to prevent the similar problems from occurring again, the relevant departments of Yunnan province and the governments at various levels have successively improved rules and regulations. The department of civil affairs of the province has revised the Provisional Measures Concerning the Management of the Acceptance of Donated Funds, Goods and Materials of Yunnan Province ; the People s government of Chuxiong prefecture has laid down the Provisional Measures Concerning the Management of the Extraordinarily Serious Natural Calamities Relief Projects and Funds of Chuxiong Relief Projects and Funds of Chu xiong Yi Nationality Autonomous Prefecture .
