Follow-up audit findings on rehabilitation and reconstruction of 72 key projects, 753 schools and urban and rural residences in 22 counties
(Announced on January 27, 2010)
From June to November 2009, the National Audit Office (known as CNAO) and local audit institutions set up 1,289 audit teams successively to conduct 4,549-man-time follow-up audit and follow-up investigation of 6,960 projects of post-Wenchuan-earthquake rehabilitation and reconstruction with a planned investment of 260.772 billion RMB. The Office alone performed audits and investigations of 72 key projects, 753 schools and reconstruction of urban and rural residences in 22 counties (including cities of county level and districts under jurisdiction of cities, similarly hereinafter) with a planned total investment of 76.85 billion RMB, of which 37.288 billion RMB had already been used. According to the principle of unified planning and overall arrangement, responsibility taken by governments of various levels, not losing sight of the general situation and whoever performs the audit shall issue a public notice , the audit findings on projects directly audited by the National Audit Office are as follows:
1. Post-Earthquake Rehabilitation and Reconstruction was Plain Sailing and the Results Remarkable.
The audit findings indicated that in the past year and more governments at various levels and all governmental departments of Sicuan Province, Gansu Province and Shannxi Provinces (hereinafter simply referred to as the three disaster-stricken provinces ) had made strenuous efforts, all aiding provinces and municipalities and cities had earnestly performed their commitments and all constructing units had faithfully committed themselves so that the rehabilitation and reconstruction, which as a result were proceeding smoothly in helping rebuild homeland for the earthquake-stricken people.
(1) Post-disaster rehabilitation and reconstruction had been plain sailing. By the end of October 2009 construction of 65 of the following-up audited 72 key projects had commenced and 11 of them completed, accounting for the number of audited projects 90% and 15% respectively; construction of 718 of the audited 753 schools had started and 480 of them completed, accounting for 95% and 64% respectively of the number of investigated schools. All 797,900 rural dwellings for rural residents in the audited and investigated 22 counties had been repaired and reinforced. There was a plan for reconstruction of dwellings for 680,000 households; construction of dwellings for 666,600 million households had started while dwellings for 602,500 households had been completed, accounting for 98% and 89% of the goal respectively. The planned repairing and reinforcing urban dwellings for 267,300 households had all started. Dwellings for 212,900 households had been completed, accounting for 80% of the planned target; dwellings for 105,800 households would be built; construction of dwellings for 61,600 households had started and dwellings for 25,800 households had been completed, accounting for 58% and 24% respectively of the planned task.
(2) In general, management of funds for post-earthquake rehabilitation and reconstruction complied with relevant regulations. Governments at various levels of the three disaster-stricken provinces had been continuously strengthening management of funds for post-disaster rehabilitation and reconstruction. Basically, there were specific books and specific accounting; the internal control system was comparatively sound management and application of funds comparatively standardized; regulatory systems of discipline inspection and supervision were improving steadily, thus ensuring the safety and effective application of the funds.
(3) Management of post-disaster rehabilitation and reconstruction projects was being strengthened unceasingly. When dealing with problems discovered in an audit competent authorities of governments at various levels drew inferences about other cases from one instance and continuously strengthened management of every link of construction. According to the audit opinions and recommendations put forward by the National Audit Office governments in the earthquake-affected areas quickened their steps in the construction of 45 projects and improvement of management of construction quality of 169 projects, thus saving and retrieving 0.258 billion RMB and ensuring the smooth progress of post-disaster rehabilitation and reconstruction.
The audit did not find out cases of losses or waste or grave violation of laws and disciplines
2. Major Problems in Rehabilitation and Reconstruction and Corresponding Rectifications
(1) Owing to problems arising from selection of location and ownership of property rights, by the end of October 2009 rehabilitation and reconstruction of dwellings for urban residents in 9 counties of the 22 disaster-heavily-stricken counties in the 3 earthquake-affected provinces failed to live up to the requirements of the plan. Construction of some of the dwellings for urban residents had not started yet; most urban residents whose dwellings needed reconstruction solved their temporary settlement by staying with heir relatives or friends or renting houses or staying in dwellings constructed with wooden planks; residents of 854 households in Zhongjiang County, Sichuan Province, Wudu Districts of the city of Longnan and Cheng County of Gansu Province, Jingqiang County, Lueyang County and Chencang District of the city of Baoji, Shannxi Province returned to their dwellings that should have been demolished.
Attaching great importance to the slow progress of reconstruction of dwellings for urban residents, governments of the three disaster-stricken provinces actively took various measures to speed up the construction schedule. Over 1,300 people of 446 households of those of the fore-mentioned 854 households that moved into the houses that should have been demolished had moved out. As for the remaining residents of 408 households, county governments concerned were taking measures to resettle them.
(2) By the end of October 2009 construction of only 27 schools had been completed and gone into use of the 138 audited schools in Gansu Province, accounting for 20% of the number of the schools submitted to auditing, while construction of 239 schools of the 319 audited school in Sichuan Province and 214 schools of the 296 audited schools in Shannxi Province had been completed, accounting for 75% and 72% respectively.
Governments at various levels in Gansu Province were adopting measures to solve the problem of land requisition that had restrained the reconstruction of schools to quicken their steps in this respect with assurance of construction quality.
(3) Construction area of 3 of the 72 key projects of rehabilitation and reconstruction projects was 69,200 m2 larger and the investment in them was 0.155 billion RMB more than the plan allowed. For example, the actual construction area of the new school buildings and indoor and outdoor stadiums of Wen County Junior High School in Gansu Province was 43,999 m2, 1.8 times the planned construction area. By October 2009 90% of the reconstruction of the outdoor stadium in Xihe County, Gansu Province had been completed with an accumulated investment of 27.7262 million RMB, which was 12.7262 million RMB more than the approved investment by the provincial Committee of Development and Reform. The approved construction area of medical institutions of the public health system of Lueyang County, Shannxi Province, was 68,600 m2 with an investment of 181.08 million RMB, which were 3.63 times and 4.67 times respectively the plan approved by the provincial government.
Governments of Wen County, Gansu Province and Lueyang County, Shannxi Province, had declared clearly that examination and approval and control of construction areas of new projects of construction should be strengthened. The Committee of Development and Reform of Gansu Province had adjusted the project budget estimate of the outdoor stadium in Xihe County and submitted the estimate to the provincial government.
(4) 0.23 billion RMB of post-disaster rehabilitation and reconstruction fund was used in violation of regulations. Among the 72 key projects Sichuan Mianyang Investment Holding (Group) Ltd. applied the 0.14 billion RMB earmarked for rehabilitation and reconstruction of Yongan Boulevard to the construction of unplanned new districts in the south of the city; Longnan Tongtu Highway Construction Department in Gansu Province and other units used 7.
0471 million RMB earmarked for post-disaster rehabilitation and reconstruction to pay back bank loans and cover day-to-day overheads. Municipal Bureau of Finance of Guanghan, Sichuan Province, and other 3 units violated the regulations by applying 82.9242 million RMB earmarked for housing subsidiaries for both urban and rural residents to construction project of low-rent dwellings for expansion of domestic needs, decoration of facades of buildings along main roads and other unplanned projects.
Rectifications for the fore-mentioned problems have been completed. Sichuan Mianyang Investment Holding (Group) Ltd. and Longnan Tongtu Highway Construction Department in Gansu Province returned 0.146 billion RMB; the Municipal Bureau of Finance of Guanghan, Sichuan Province, has submitted its adjustment in application of housing subsidiaries for urban and rural residents to its higher-up authorities for examination and approval.
(5) Redundant application for 0.24 billion RMB for post-earthquake rehabilitation and reconstruction. Among the 72 key projects Sichuan Guangyuan Disease Control Center, the projects of water supply pipelines and drainage pipelines under Baoguo Road in Chencang District of the city of Baoji, Shannxi Province, the urban garbage handling project and No. 2 teaching building of county junior high school of Cheng County in Gansu Province these 5 projects applied once more for funds of 74.8379 million RMB for post-disaster rehabilitation and reconstruction with projects the funds for which had already been in place; Malian Elementary School of Miba Village, Kang County, Gansu Province, and Zhouqu village clinic also in Gansu Province applied for a second time for post-earthquake rehabilitation and reconstruction fund from the central government and social donations, which totaled 2.0876 million RMB; Chengdu municipality and Aba Prefecture of Sichuan Province and 12 counties under the jurisdiction of 3 cities and prefectures of the city of Longnan, Gansu Province, made a redundant counting of urban and rural residents of 8,615 households, resulting in obtaining 0.163 billion RMB more than necessary for housing subsidiaries for urban and rural residents, 8.6190 million RMB of which had already been issued.
Rectifications have basically been carried out. The Public Health Bureau of the city of Guangyuan, Sichuan Province, and Chengcang District of the city of Baoji in Shannxi Province, have adjusted their construction plan; the 4 projects of the urban garbage handling center of Cheng County in Ganzu Povince, No. 2 teaching building of the No. 2 County Junior High School in Cheng County, the teaching building of Malian Elementary School in Miba Village in Kang County and the village clinic in Zhouqu County are under rectification; counties concerned in Chengdu municipality and Aba Prefecture in Sichuan Province and 3 cities and prefectures including the city of Longnan in Gansu Province have straightened out the redundant counting of people who are entitled to housing subsidiaries for urban and rural residents and written off the redundant households. There are no more redundant subsidiaries and the 8.6190 million RMB redundantly issued has been retrieved.
(6) Of the rehabilitation and reconstruction of the 72 key projects and 753 schools there was regulation-violating sub-contracting in 14 projects; technical personnel of project management had not been in place in compliance with contract requirements in 151 projects; management of 145 projects failed to comply with standards of the state; water infiltration in roofing was found in 126 projects; construction defects were found in 37 projects, such as insecure installation and dropping off of ceilings, missing of interior guardrails, loosing handrails; the distance between steel bars not in compliance with design requirements was found in 5 projects. For example, deviation of axles of 34 of the 78 foundation cushion caps for the teaching building of Bailu Elementary School in the city of Pengzhou exceeded the standardized requirements of the state, exposed and loose steel bars could be seen in the concrete of the main structure and the dimensions of frame pillars were comparatively small.
Competent authorities concerned and relevant construction units have conducted an overall inspection of management of project construction. Most of the defects have been remedied and construction management strengthened. The construction unit responsible for the construction of Bailu Elementary School carried out corresponding rectifications and commissioned Sichuan Academy of Building Research to assess the quality of the teaching building after rectification. The assessment confirmed that the quality was in compliance with relevant requirements.
(7) The random check of schools in the 4 fatally disaster-stricken counties (cities) in Sichuan Province, namely Dujiangyan, Pengzhou, Chongzhou and Dayi, that had been built and put into use, found that 3,967 mu of newly added land for construction of 82 schools did not undergo formalities for examination and approval; 1,670 mu of construction land for 45 schools was not requisitioned but rented.
In addition, some schools had moved to new venues, but the land they occupied prior to the disaster had not been arranged for other purposes. The random check of 7 heavily-stricken counties under the jurisdiction of the city of Dujiangyan found that 285 schools had left 3,279
mu *of land after they settled down elsewhere, only 731 mu of land has been arranged for other purposes and the purpose for the rest 2,548 mu of land had remained undecided when the audit commenced.
Governmental departments concerned are active in raising funds for land requisition and urging relevant units and departments to quicken their steps in undergoing formalities for newly requisitioned construction land. Sichuan Province is conducting an overall clearing up of the idle land for mapping-out a specific plan for utilizing it.
In addition, clues of some law-breaking and regulation-violating case were found in the audit. 4 cases have been handed over to the judicial organ, discipline inspection and supervision organ and other relevant departments for investigation and prosecution. 14 suspects and 1.3484 million RMB were involved.
With a view to strengthening supervision over the audit of post-disaster rehabilitation and reconstruction the National Audit Office has set up a coordination institution for follow-up audit in the three disaster-stricken provinces and sent over 30 cadres to the major earthquake-affected cities and counties who assume a temporary post at the lower level to gain experience and the invited people as special auditors to work together to supervise auditing. Audit resources have been straightened to enhance audit quality and level and strenuous efforts exerted to do an excellent job in auditing of post-disaster rehabilitation and reconstruction. During the auditing the National Audit Office persisted in combination of auditing and rectification. Units concerned are informed in time of the problems of violation of standards and regulations in management of funds for post-disaster rehabilitation and reconstruction and management of projects, and they are urged to make rectifications. In the audit the National Audit Office put forward altogether 132 suggestions, which governmental departments and units concerned accepted altogether. So far rectifications have been made to 40 of them and the rest are under rectification. What the National Audit Office has done has considerably promoted the standardization of post-disaster rehabilitation and reconstruction, helped rehabilitation and reconstruction progress in an orderly way and effectively displayed the immunization function of auditing.
The follow-up audit findings of 23 provincial and municipal audit institutions will be made known to the public by themselves respectively.
* 1 mu = 0.11644 acre = 0.0667 hectare 
