According to a report released by the National Audit Office (NAO) yesterday, various levels of government put aside the money in a special fund to prevent and control SARS (severe acute respiratory syndrome).

Related organizations received social donations valued at 4.152 billion yuan (US$500 million).

Between July and August of 2003, the NAO launched a nationwide audit of SARS budgets and distribution of social donations.

The report shows 12.761 billion yuan (US$1.54 billion) were spent on SARS prevention and control across the country by July 31.

Total social donations included 2.442 billion yuan (US$295 million) in cash and 1.71 billion yuan (US$210 million) in goods and material. Of the total, 3.166 billion yuan (US$383 million) had been distributed, said the report.

The audit covered 5,533 hospitals, 219 emergency rescue centers, 1,190 disease control centres, and 16,380 schools, neighbourhood communities, rural towns and township.

Thanks to rigid supervision, the report said, overall use and management of government money and social donations was good and there were no major cases of embezzlement discovered.

In recent years, China has beefed up financial supervision of govern-ment departments and State-owned enterprises.

The NAO has instituted a mechanism for periodical release of its auditing reports, which have drawn people's close attention.

Capital misused

Also, NAO exposed a number of corruption cases, involving the Ministry of Land and Resources (MLR), the State Bureau of Surveying and Mapping (SBSM) and the Industrial and Commercial Bank of China (ICBC).

Embezzlement of funds dedicated to special projects valued at 6.307 million yuan (US$760,000) was uncovered in the MLR's 2003 financial budget, the report said.

The auditing report said the funds designated for special projects were used as wages and bonuses to ministry functionaries or to make up administrative expenses between 2000 and 2003.

Meanwhile, fees worth 4.18 million yuan (US$500,000) in total, charged by the SBSM have not been promptly turned over to the central government.

Moreover, auditors found 30 clues relating to illegal cases with the ICBC, involving as much as 6.9 billion yuan (US$830 million) in misused funds, added the auditing outcome report on ICBC's assets and liabilities in 2002.

The report also acknowledged that the people concerned in the MLR, SBSM, ICBC cases have been criticized, penalized or fired, and part of the embezzled funds have been returned. Citing an example, 368 ICBC liable officials or staffers have been punished and 42 others dismissed.

(China Daily)