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No. 2 of 2011 (General Serial No. 71): Results of 28 Cases by the end of 2010 Transferred by the National Audit Office

No. 2 of 2011 (General Serial No. 71): Results of 28 Cases by the end of 2010 Transferred by the National Audit Office

Write: Toste [2011-05-20]
Results of 28 Cases by the end of 2010 Transferred by the National Audit Office
(Announced on January 17, 2011)

1. The Case of Bribe Acceptance and Power Abuse Committed by Tang Ruoxin, Former General Manager of China Export & Credit Insurance Corporation

During the audit over the China Export and Credit Insurance Corporation, the National Audit Office (the CNAO) found that between 2002 and 2003, Tang Ruoxin made a presumptuous decision in violation of relevant regulations to commission financial transactions involving RMB 300 million yuan, of which 200 million yuan failed to be retrieved. The CNAO handed over the relevant clues to the Ministry of Supervision and a public prosecution was initiated by the procuratorial organ. In February 2010, the Beijing No. 2 Intermediate People s Court sentenced Tang Ruoxin to 14-year imprisonment on the charge of bribe acceptence and power abuse.

2. The Case of Obtaining Loans by Cheating Committed by Zhou Yuejin, Legal Representative of Shanghai Jinyuan International Economy and Trade Development Co. Ltd., and Others

While auditing the China Export and Credit Insurance Corporation, the CNAO found that from June to September 2008 Zhou Yuejin (then a member of the Shanghai Municipal People s Political Consultative Conference and vice chairman of Shanghai Municipal Federation of Industry and Commerce) and the Zhejiang Shaoxing Zongheng Holding Group Co. Ltd. illegally obtained loans amounting to RMB 293 million yuan from the Shanghai Branch of Agricultural Bank of China by employing domestic trade credit insurance and engaging in false transactions in the form of closed cycle. The CNAO handed over the clues to the public security department and a public prosecution was initiated by the procuratorial organ. In April 2010, the Shanghai No. 1 Intermediate People s Court sentenced Zhou Yuejin to 6-year imprisonment and a penalty of one million yuan on the charge of obtaining loans by fraud; and Liu Yongjun, who was involved in the same case, to 3-year imprisonment with a 5-year reprieve and a penalty of 100,000 yuan.
3. The Case of Fund Misappropriating Committed by Shi Guofeng, Former General Manager of Operation Center of China Eastern Airlines Corporation Limited, and Others
The CNAO found that, when auditing the China Eastern Airlines Aviation Group Corporation, from October 1998 to January 2009 Shi Guofeng, taking advantage of his position, placed an amount of RMB 182 million yuan of off-the-book revenue from ground agencies in the personal bank accounts of his own, his relatives and his subordinates. He was thus suspected of usurping property of the China Eastern Airlines. The CNAO transferred the clues and evidences to the public security department. The procuratorial department filed a public prosecution, and in July 2010 the People s Court of Changning District, Shanghai, sentenced Shi Guofeng to 14-year imprisonment plus confiscation of his personal property amounting to 5 million yuan on the charge of illegal possession by taking advantage of his position; Lu Weiyu, who was involved in the same case, was sentenced to 2-year imprisonment plus confiscation of his personal property amounting to 20,000 yuan; 10 million yuan illegally obtained was returned to the China Eastern Airlines.

4. The Case of Obtaining Loans by Cheating Committed by the Kuang Family in Nanhai District, Foshan City, Guangdong Province

During the audit investigation over invoices of the Rural Credit Cooperatives, the CNAO found that at the beginning of 2008 the Kuang family was suspected of obtaining by cheating credit fund of RMB 370 million yuan from the Foshan Nanhai Rural Credit Cooperative by using shell corporations and providing false documents. Of the 370 million yuan, 280 million yuan was usurped. The CNAO handed over the clues and evidences of the case to the public security department. The procuratorial organ initiated a public prosecution, and in October 2009 the People s Court of Nanhai District, Guangdong Province, sentenced Huang Zanduan, Liang Lifeng and other 4 persons of the Foshan Nanhai Rural Credit Cooperative to 14-year, 12-year and shorter imprisonment respectively on the charge of lending money in violation of relevant regulations; Xu Junpei and Deng Jiapeng of the Kuang family were sentenced to 5-year imprisonment on the charge of obtaining the loan by fraud.

5. The Case of Obtaining Loans by Fraud Committed by Zhao Baojie, Chairman of the Board of Directors of Liaoning Zhida Group

The CNAO found when auditing the Liaoning Provincical Branch of the Agricultural Bank of China that, in 2007 Zhao Baojie (then a deputy to the Municipal People s Congress of Huludao City) acquired loans by fraud amounting to more than RMB 400 million yuan from the Branch by falsifying land evaluation reports, sales contracts and accounting statements through the Liaoning Zhida Construction Co. Ltd. and the Liaoning Fangyuan National-Standard Sample Oil Co. ltd. under his control. Of the sum, 200 million yuan was transferred to his personal account or cashed. Zhang Shuhai, deputy director of the branch of the Agricultural Bank of China, and some others were found to have accepted bribes and given loans in violation of regulations when handling the application for loans. The CNAO transferred relevant clues and evidences to the public security department. The procuratorial organ initiated a public prosecution, and in January 2010 the Intermediate People s Court of the city of Panjin, Liaoning Province, sentenced Zhao Baojie, Zhang Shuhai and other 9 criminals to one-year to 17-year imprisonment respectively.

6. The Case of Usurping State-owned Assets on the Sly and Offering Bribes Committed by Wang Meizhen, General Manager of Shanghai Jinghai Engineering Technology Corporation, and others

When auditing the budgetary implementation of the Central Government departments, the CNAO found that from 2003 to 2007, Wang Meizhen and others acquired RMB 12.3428 million yuan by listing expenditures as costs with false invoices and illegally usurped and divided state-owned assets among them in the name of year-end bonus, information fees, and subsidy to housing purchase. The CNAO handed over the clues and evidences to the Supreme People s Procuratorate. In April 2009, the People s Court of Guangyang District of of Langfang City, Hebei Province, ruled to impose a penalty of 4 million yuan on the Shanghai Jinghai Engineering Technology Corporation on the charge of offering bribes, and sentenced Wang Meizhen to 5-year imprisonment and a penalty of 300,000 yuan on the charge of usurping state-owned assets and offering bribes; Ma Wenliang and Duan Changzai, who were involved in the same case, were sentenced to 3-year imprisonment with a 5-year reprieve and a penalty of 200,000 yuan.

7. The Case of Illegal Possession by Taking Advantage of His Position Committed by Zhang Jiahong, Chairman of the Board of Directors of Kuanghong Corporation, a Privately- Run Enterprise
While auditing the Agricultural Bank of China Co. Ltd., the CNAO found that in December 2006 Zhang Jiahong, by taking advantage of his position, transferred 3 flats bought by Kuanghong Corporation for RMB 5.4424 million yuan to his ownership in the name of straightening out fixed assets. The CNAO handed over the clues and evidences to the People s Procurtorate of Dongli District of Tianjing Municipality for further investigation. The procuratorate filed a public prosecution, and in November 2009 the Dongli District People s Court in Tianjing sentenced Zhang Jiahong to 3-year imprisonment with a 3-year reprieve on the charge of illegal possession by taking advantage of his position.
8. The Case of Embezzlement Committed by Cha Haitao, a Computer Management Staff of the Urban Subsistence Allowances Center of Datong City, Shanxi Province
The CNAO found when auditing the fund for urban residents subsistence allowances that, from May 2008 to December 2009 Cha Haitao, taking advantage of his work, tampered with figures for issuing fund for urban residents subsistence allowances and embezzled a total of RMB 3.1559 million yuan. The money was transferred to 17 discarded bank cards for subsistence allowance and to his mother s bank card for subsistence allowance. The CNAO handed over the clues and evidences to the local procuratorial organ, which then initiated a public prosecution. In May 2010 the Intermediate People s Court of Datong City sentenced Cha Haitao to 13-year imprisonment on the charge of embezzlement and confiscated his property worth 100,000 yuan. The 3.1559 million yuan involved in the case was retrieved. Meanwhile, administrative punishment were given to the director and other two persons of the Center by the Urban District Government of Datong City.
9. The Case of Fund Misappropriation and Bribe Acceptance Committed by Liu Huiping, Former Director of Management Center for Housing Public Accumulation Fund, and Other People
When auditing the publicly accumulated housing fund, the CNAO found that, from 2001 to 2005 Liu Huiping obtained RMB 420,00 yuan of such fund by way of applying and self-approving his application for buying the same flat three times without providing the purchasing agreements. From 2005 to 2007 Li Jinxing, deputy director of the Center, obtained a total of 600,000 yuan of the publicly accumulatedn housing fund by applying and getting approval from Chen Yuzhu, another deputy director, for buying the same flat three times without providing the purchasing agreements. Besides, from March 2001 to September 2006, Liu Huiping and Chen Yuzhu issued publicly accumulated housing fund amounting to 811,000 yuan to the Center s staff member Xu Lei and his spouse. The CNAO transferred the clues and evidences to the Supreme People s Procuratorate. After public prosecution was initiated, the Intermediate People s Court of Yinchuan City, Ningxia Hui Autonomous Region, sentenced Liu Huiping in the second trial to 5-year imprisonment in May 2009 on the charge of fund misappropriation.

10. The Case of Embezzlement of Urban Subsistence Allowance Fund Committed by Kong Fanzhu, a Management Staff for Such Fund in Henan Jianghe Machinery Co. Ltd.


The CNAO found when auditing fund for urban subsistence allowances that, from 2006 to 2009 Kong Fanzhu, taking advantage of his duty and opportunity of drawing allowances from the local civil affairs department for qualified staff members of the company and their dependents, pocketed RMB 39,676 yuan by means of drawing the money on behalf of 23 recipients by covering up the truth that they had moved away or died or were simply unqualified. The CNAO forwarded the clues and evidences to the local procuratorial organ. After a public prosecution was initiated, the People s Court of Lushan County, Henan Province sentenced Kong Fanzhu in June 2010 to 3-year imprisonment with a 3-year reprieve on the charge of embezzlement in the first trial.
11. The Case of Misappropriation of the Urban Subsistence Allowance Fund Committed by Liu Hongfu, a Counter Staffer at the Changqing District Branch in Jinan City, Shandong Province of the Postal Savings Bank of China Co. Ltd.

When auditing the fund for urban subsistence allowances, the CNAO found that, from January 2008 to June 2009 Liu Hongfu was suspected of misappropriating RMB 102,300 yuan by taking advantage of his work to put part of the un-issued fund for urban subsistence allowances into his personal business-related savings account. The CNAO handed over the clues and evidences to the local procuratorial organ. After initiation of public prosecution, the Changqing District People s Court of Jinan City sentenced Liu Hongfu in July 2010 to 2-year imprisonment with a 2-year reprieve on the charge of fund misappropriation.
12. The Case of Offering and Accepting Bribes Committed by Tai Honglin, Party Secretary of the Xianfeng Community Neighborhood Committee of the Jingyue Subdistrict Office, Jingyue Economic Development Zone, Changchun City, Jilin Province, and others

The CNAO found when auditing the special fund for land that, in September 2007 Tai Honglin and Yang Shulin (deputy secretary of the neighborhood Party committee) obtained more than RMB 8 million yuan intended for land compensation in the course of land requisition by making a false report on things on the ground. Tai Honglin and Yang Shulin gave Lan Kaizhuo, deputy director of the Jingyue Land Station, and Wang Yue, a staffer of the Station, 1.10 million yuan each, and Jin Gang, director of the Station, 50,000 yuan, as kickback in the name of the neighborhood committee. The CNAO transferred the clues and evidences to the People s Procuratorate of Changchun City, Jilin Province. A public prosecution was initiated, and from September to December 2009 the Kuangcheng District People s Court of, Changchun City sentenced Lan Kaizhuo to 10-year imprisonment and Jin Gang to 3-year imprisonment with a 3-year reprieve on the charge of accepting bribes, Wang Yue to 2-year imprisonment with a 3-year reprieve on the charge of embezzlement, and Tai Honglin and Yang Shulin to 3-year imprisonment with a 3-year reprieve on the charge of offering bribes in the name of their unit.
13. The Case of Fund Misappropriation Committed by Li Zichao, Former Director of Downtown Branch of the Publicly Accumulated Housing Fund Management Center of Yinchuan City, Ningxia Province

When auditing the publicly accumulated housing fund, the CNAO found that, in 2006 Li Zichao instructed others to obtain by cheating a 300,000 yuan loan of such fund without provision of housing purchasing contracts and receipts for down payments, and put the money into his own pocket. He was also suspected of issuing loans of publicly accumulated housing fund to unqualified people. The CNAO forwarded the clues and evidences to the Supreme People s Procuratorate for further investigation. In 2008 the People s Court of Xingqing District, Yinchuan City, Ningxia Hui Autonomous Region, sentenced Li Zichao to 5-year imprisonment on the charge of fund misappropriation.
14. The Case of Accepting Bribes Committed by Zhang Yalei, Former Director of Fangshan Tea Plantation, Jurong City, Jiangsu Province

The CNAO found when auditing the land treatment projects for comprehensive agricultural development that, in September 2008 Zhang Yalei colluded with the project manager Lu Lihua in the course of executing the land treatment project for the Fangshan Tea Plantation After Lu Lihua received RMB 652,100 yuan of construction fees, he deposited 270,000 yuan directly in Zhang Yalei s personal bank account, with 200,000 yuan of which as rent in the hotel run by Zhang Yalei. The CNAO transferred the clues and evidences to the procuratorial organ. After a public prosecution was initiated, the Municipal People s Court of Jurong, Jiangsu Province sentenced in July and August Zhang Yalei to 10-year-and-6-month imprisonment and Lu Lihua to 2-year imprisonment with a 2-year reprieve on the charge of accepting bribes and offering bribes. Involved in the same case, Zhan Weiguo, director of the Bureau of Agricultural Resources Development, and Shu Ronghua, section chief of the Bureau, were sentenced to 10-year-and-8-month imprisonment and 6-year imprisonment respectively on the charge of accepting bribes; and Zhu Muping, manager of Jurong White Rabbit Construction Co. Ltd., was sentenced to 2-year imprisonment with a 2-year reprieve on the charge of offering bribes.

15. The Case of Extorting and Accepting Bribes Committed by Liu Yang, Former Responsible Person for Shimian Office of Sichuan Yaxi Expressway Co. Ltd
When auditing the project of highway development in central Sichuan (Yalu Expressway), the CNAO found that from August 2007 to May 2008 Liu Yang, taking advantage of his power for examining and approving construction funds, extorted and accepted bribes worth RMB 260,000 yuan from the No. 19 section in the contract under his charge. The management of the section was chaotic with frequent accidents and the construction of the section was twice subcontracted. The CNAO handed over the clues and evidences to the procuratorial organ. After public prosecution, the Intermediate People s Court of Chengdu City sentenced Liu Yang to 10-year imprisonment on the charge of accepting bribes.

16. The Case of Fund Embezzlement Committed by Zhao Lei, Former Manager of Financial Affairs Department of Real Estate Development & Operation Corporation of Shanghai Jiangnan Shipyard (Group) Co. Ltd.


The CNAO found when auditing the economic liability of former legal representatives of China State Shipbuilding Group Corporation during their tenure of office, Zhao Lei was suspected of embezzling RMB 530,200 yuan of building purchasing fees when handling the purchase for the Jiangnan Shipyard (Group) Co. Ltd. The CNAO handed over the clues and evidences to the Shanghai Municipal People s Procuratorate. After public prosecution, the Luwan District People s Court of Shanghai sentenced Zhao Lei in March 2010 to 5-year-and-6-month imprisonment on the charge of fund embezzlement.
17. The Case of Accepting Bribes Committed by Fang Xiaobin, Chief and Secretary of the Party Branch of Management Station of Capital Construction and School Property of the Education Board of Jingan District, Shanghai

In the special audit investigation of the urban basic education fund, the CNAO found that in 2006 the Shanghai Jinyu Building Decoration Co. Ltd. (an affiliated unit of the Management Station of Capital Construction and School Property of the Education Board of Jingan District, Shanghai responsible for projects of capital construction of the Station) provided cash payment for construction and wrote invoices on behalf of others, thus being suspected of usurping and misappropriating fund. The CNAO forwarded the clues and evidences to the Shanghai Municipal Education Commission for further investigation. After re-examination, the Education Board of Jingan District found that Fang Xiaobing turned a blind eye to the facts that the Shanghai Jinyu Building Decoration Co. Ltd. drew large amounts of cash and issued invoices on behalf of others and he also helped others undertake or subcontract projects in violation of regulations by taking advantage of his position. In such dealings, he accepted bribes in cash and in kind totalling RMB 620,000 yuan. After the People s Procuratorate of Jingan District filed a public prosecution, the People s Court of Jingan District sentenced Fang Xiaobing in July 2009 to 5-year imprisonment on the charge of accepting bribes and confiscation of his properties worth 40,000 yuan; all the embezzled money and goods were confiscated. The Education Board of Jingan District also expelled him from the Communist Party as a punishment.

18. The Case of Embezzlement Committed by Wang Yonghong, Former Director of Office for Rural Hygiene and Drinking Water Improvement Projects of Yongdeng County, Gansu Province

In the special audit investigation of projects for consolidation of risky reservoirs, the CNAO found that Wang Yonghong and others asked for a sum of 10% of the bidding price for themselves before signing the contract for consolidation construction with the construction unit the Rock and Earth Engineering Section for Water Conservancy and Hydropower Stations Construction of Gansu Province, that the Section paid the sum by illegally obtaining construction fund with falsified expenditure for cement, and that the financial management of the office for Rural Drinking Water Improvement Projects was chaotic with part of the fund disappearing. The CNAO handed over the clues and evidences to the procuratorial organ for further investigation, in which it was found that Wang Yonghong, taking advantage of his position, set up a small exchequer by way of not entering revenues into books and pocketed 31,600 yuan out of it; in addition he accepted a 20,000 yuan kickback from Li Zhiping and Li Rongde of the Rock and Earth Engineering Section. After the procuratorial organ of Yongdeng filed a public prosecution, the People s Court of Yongdeng County sentenced Wang Yonghong in October 2009 3-year imprisonment with a 4-year reprieve on the charge of embezzlement and accepting bribes; the embezzled 51,600 yuan was confiscated according to law and handed in to the national treasury; a penalty of 50,000 yuan was imposed on the office for Rural Drinking Water Improvement Projects; and Li Zhiping and Li Rongde were sentenced to one-year imprisonment with a one-year reprieve on the charge of offering bribes.

19. The Case of Power Abuse and Acceptance of Bribes Committed by Huang Xiange, Former Secretary of the Municipal Party Committee of Zixing, Hunan Province, and Others

When auditing fund from land sale and fund for land development and arrangement, the CNAO found that from 2002 to 2005 Huang Xiange and Cheng Zhixiang, former director of Municipal Bureau of Land and Resources of Zixing City, instructed the Bureau of Land and Resources and the Bureau of Finance to obtain by cheating RMB 13.74 million yuan of fund for land development and arrangement of 10,000 hectares of fertile farmland around the city by way of concocting projects and falsifying documents. Of the sum, 12 million yuan was spent on the construction of the Dongjiang Pearl Hotel in the city and 1.74 million yuan on the staff as welfare and entertainment. The CNAO transferred the clues and evidences to the Supervision Department of the Party Discipline Inspection Commission of Hunan Province. After public prosecution was filed by the Municipal Procuratorate of Chenzhou, Hunan Province, the People s Court of Beihu District of Chenzhou sentenced Huang Xiange in January 2009 to 8-year imprisonment on the charge of power abuse and acceptance of bribes; the bribed 757,131 RMB yuan and 1,000 US dollars were confiscated and handed in to the national treasury; and Chen Zhiqiang was sentenced to 3-year imprisonment on the charge of power abuse and acceptance of bribes.
20. The Case of Embezzlement Committed by Yan Tienan, Former Principal of Heilongjiang Light Industry Technical School, and Others

In the special audit investigation of social security fund, the CNAO found that in 2007 Yan Tienan and Liu Ying, former cashier of Heilongjiang Light Industry Technical School, concealed the non-tax revenue of RMB 894,700 yuan, of which 60,000 yuan was taken away by Yan Tienan through Liu Ying and Hu Weixin (chief of finance section and concurrently accountant of the school) and 231,800 yuan disappeared. The CNAO handed over the clues and evidences to the Municipal People s Procuratorate of Harbin, Heilongjiang Province. After public prosecution was initiated by the People s Procuratorate of Xiangfang District, the People s Court of Xiangfang District respectively sentenced in May, June and August 2009 Yan Tienan to 3-year imprisonment with a 4-year reprieve, Hu Weixin to 2-year imprisonment with a 3-year reprieve and Liu Ying to 3-year imprisonment with a 5-year reprieve on the charge of embezzlement. All the embezzled money was returned to the school.
21. The Case of Fund Misappropriation Committed by Zhou Xiande, Former Director of Center for Housing Loan Guarantee, Huaibei City, Anhui Province, and Others

The CNAO found when auditing the publicly accumulated housing fund that, from December 1999 to April 2001 Zhou Xiande and others, taking advantage of their position, applied for such fund and examined and approved their own applications, thus obtaining 18 installments of publicly accumulated housing fund totaling RMB 610,00 yuan with which they bought 6 flats. Of the total sum, 294,000 yuan was spent on buying 3 places for opening shops and 316,000 yuan on buying 3 flats for accommodation. The CNAO transferred the clues and evidences to the Supreme People s Procuratorate. After public prosecution was filed, the Intermediate People s Court of Huaibei City sentenced in the first trial on September 26, 2008 Zhou Xiande to 3-year imprisonment with a 5-year reprieve in the first trial, Lv Shenlin, who was involved in the same case, to 2-year imprisonment with a 3-year reprieve, and Gu Jun, who was also involved in the same case, to one-year imprisonment with a 2-year reprieve, all on the charge of fund misappropriation.

22. The Case of Embezzlement Committed by Guo Shoubiao, Former Deputy Director of Office of Center for Immigrants Management and Consultancy of The CNAO of State Council Three Gorges Project Construction Committee

In the audit of the Office of Three Gorges Project Construction Committee of the State Council, the CNAO found that from 2003 to 2009 Guo Shoubiao, taking advantage of his position, bought, falsified or asked for invoices for meals and accommodation at a number of places offering services and obtained reimbursements totaling RMB 210,000 yuan in the name of expenses for entertaining guests, which he put into his own pocket. The CNAO handed over the clues and evidences to the Municipal People s Procuratorate of Yichang. After the People s Procuratorate of Xiaoting District, Yichang, initiated a public prosecution, the People s Court of Xiaoting District sentenced Guo Shoubiao in August 2010 to 10-month imprisonment with a one-year reprieve.

23. The Case of Accepting Bribes Committed by Gao Yong, Manager in Charge of Clients of Sichuan Yibin Branch of Agricultural Bank of China

When auditing the Sichuan Branch of the Agricultural Bank of China, the CNAO found that from June 2007 to April 2009 Gao Yong provided simplified and intermediate loans to 7 unqualified private enterprises for such loans and accepted RMB 30,000 yuan as bribes. The CNAO transferred the clues and evidence to the People s Procuratorate of Nanxi County, Yibin, Sichuan Province. After public prosecution was filed, the People s Court of Nanxi County sentenced Gao Yong in August 2009 to one-year imprisonment with a 2-year reprieve.
24. The Issue of Misappropriation of Reconstruction Fund Committed by Li Tingquan, Former Head of Shangde Town, Wen County, Gansu Province

In the follow-up audit of post-quake reconstruction, the CNAO found that in September 2008 Li Tingquan misappropriated RMB 432,000 yuan of housing subsidy to 50 households in Xujiaping and Zhoubanshan villages in Shangde Town, and another 275,000 yuan for land requisition for households of Xujiaping and Fengyunshan villages that were relocated all together to rebuild their houses. Li Tingquan bought steel products with the money and sold them to households making reconstruction at prices fixed by himself. The CNAO handed over the clues to the Party discipline inspection commission of Wen County for treatment and Li Tingquan was given a serious warning. By the end of August 2009, Li had returned 382,100 yuan for housing subsidy and 275,000 yuan for land requisition. As for the rest of the misappropriated 49,900 yuan for housing subsidy, the government of Shangde Town, Wen County has taken measures to collect the money.

25. The Issue of Withholding and Misappropriating Reconstruction Fund Committed by Yang Enmao, Former Secretary of Hanban Township Party Committee, Zhouqu County, Ganna Perfecture, Gansu Province, and Others.

In the follow-up audit of fund for post-quake recovery and reconstruction, the CNAO found that Yang Enmao, former secretary of the township Party committee, Wang Wei, township head, Wang Zhiyun, deputy secretary of the township Party committee, and Xie Jintang, an account, presumptuously decided to withhold the RMB 880,000 yuan of subsidy to be issued to 44 households in Gudang Village for housing reconstruction and placed 630,000 yuan in Xie Jintang s personal account, which was spent in making preparations for reconstruction (connection of water, electricity and roads and leveling of ground) in Gudang Village. Yang Enmao also presumptuously decided to change the standard of subsidy for persons with no income, no ability to work and no legal supporter as well as orphans, childless old people and helpless disabled persons from 300 yuan per person to 300 yuan per household. The sum of 47,400 yuan thus withheld was also deposited in Xie Jintang s personal bank account. The CNAO handed over the clues and evidences to the Discipline Inspection Commission of Ganan Prefecture of the Chinese Communist Party for treatment. Yang Enmao and Wang Wei were given a serious warning and Wang Zhiyuan and Xie Jintang a warning within the Party, and all the withheld money had been returned.
26. The Issue of Issuing VAT Invoices in Violation of Regulations on Behalf of Other Units by the Branches of the Bureau of State Taxation Administration of Wuhai City, Inner Mongolia Autonomous Region

In the special audit of taxation administration, the CNAO found that from 2007 to 2008 the three branch bureaus under the State Taxation Bureau of Wuhai City, Inner Mongolia Autonomous Region, established 21 norminal small-scale private businesses using duplicate copy of ID cards of other persons and issued 10,808 VAT invoices involving 549 enterprises and the amount RMB 7.7 billion yuan, causing a loss of local tax revenue of 43.75 million yuan. The CNAO handed over the clues and evidences to the State Taxation Administration. The Administration organized a special investigation team to look into the matter. By the end of 2009, 35.99 million yuan of local tax payment had been retrieved and 38 persons involved had been held to account for their administrative liability, of them 3 persons were discharged of their administrative duties, 3 persons were demoted, 9 persons were administratively punished. In addition, another 18 persons involved were given economic penality.

27. The Issue of Illegally Obtaining and Misappropriating Central and Local Financial Funds by Several Governmental Departments of Tongde County, Hainan Prefecture, Qinghai Province

In the audit investigation of drinking water safety conditions in rural areas, the CNAO found that from April 2007 to June 2009 the Water Authority of Tongde County illegally obtained RMB 1.20 million yuan of fund for drinking water safety projects in rural areas by fabricating projects and expenditures; the Bureau of Forestry and Environmental Protection illegally obtained 1 million yuan of special fund for closing hillsides for re-afforestation and for protection of natural forests at the source of the three big rivers by listing salary for non-existent staff; the Bureau of Finance illegally obtained 60,000 yuan of subsidy fund for reforesting cultivated land by writing false invoices for transport expenses; the Bureau of Communications and Construction obtained illegally 254,900 yuan of central finance for poverty alleviation by fabricating projects providing road-connection and TV and postal coverage for every village and 803,800 yuan of special fund for the construction of national highways; the Bureau of Development, Reform, Economy and Trade illegally obtained 2.36 million yuan of special central finance for capital construction and collected 407,800 yuan of so-called coordination fees from the construction units. The CNAO handed over the clues to the People s Government of Qinghai Province for treatment. The Qinghai Provincial Government circulated a dispatch regarding the case in the entire prefecture and gave 16 persons in question Party-discipline or administrative punishment respectively. The 5 units involved in the case received due punishment and the illegally obtained money had been returned to where it came from.
28. The Issue of Occupation of Basic Farmland by Dengfeng Xiangyang Power Co. Ltd., a Privately-Run Enterprise.

In the audit of power construction projects of Henan Province, the CNAO found that in November 2003 the Dengfeng Xiangyang Power Co. Ltd., a privately-run enterprise, signed without approval agreements with villages concerned, illegally occupying 286.62 hectares of basic farmland and 14.19 hectares of other farmland in Dengfeng City for the construction of the Songyang Power Plant in violation of regulation.

The CNAO forwarded the clues to the Supervision Department of the Central Commission for Discipline Inspection of the CPC. The Supervision Department formed a joint investigation team with the State Development & Reform Commission, the Ministry of Land and Resources, the Ministry of Environmental Protection and the Ministry of Water Resources to look into the matter.

The public security organ of Henan Province placed Dong Songnian, legal representative of Xiangyang Power Co. and deputy to Zhengzhou Municipal People s Congress, and Li Tielin, legal representative of Songying Corporation under criminial detention; the Provincial Government of Henan instructed the Municipal Government of Zhengzhou, deputy head of the Bureau of Water Conservancy of the province Yu Hequn, and secretary of the Dengfeng Municipal Party Committee Zhang Xuejun to make a profound self-criticism to the Provincial Government and the Zhengzhou Municipal Party Committee; Chen Songlin, secretary of Party Group and concurrently director of Zhengzhou Bureau of Water Conservancy and 5 other persons were demoted or given a serious warning within the Party.

By now the plant buildings and equipment with an investment of more than 700 million yuan have been dismantled.