Embezzlement, fraud, bribes and waste have accounted for more than US$34.4 billion (Dh126.34bn) missing from China's public purse in the first 11 months of this year, the country's top auditor says.
And the country's fiscal stimulus plan made it even easier for corrupt officials.
Officials in Datong in Shanxi province were rebuked for using 760,000 yuan (Dh408,433) set aside for expanding the airport to buy a luxury sports utility vehicle. They received a demerit on their records and the vehicle was auctioned.
"We should enhance officials' awareness of law and set up a clear accountability system at all government levels," Liu Jiayi, the head of China's audit office, told the Xinhua news agency as his office issued its report.
Corruption is the most controversial issue in China today. Fearing a popular backlash against workers creaming off public funds, the Communist Party has taken significant, highly public steps to stamp out graft.
The auditors went through the books of more than 20,000 officials and nearly 100,000 companies, including 14 provincial governors and ministerial-level officials, as well as the directors of 12 state-owned enterprises, between January and November this year.
The auditors said more than 230 people, including 67 government officials, had been handed over to disciplinary or judicial authorities for roles in the missing funds.
One of China's leading commentators on financial issues, Dr Ye Tan, said the fact that audits were carried out after projects had been started made it difficult to supervise how money was spent.
"Next year I think the embezzlement problem will be less severe than this year's, since next year there will be fewer new infrastructure projects being carried out," Dr Ye said.
"If our way of auditing changed and if auditors were involved in investment projects from the outset and were able to closely follow projects from the start, then I believe the embezzlement problem could be addressed."
Some bigger projects are ripe for corruption, and Mr Liu said there should be greater oversight on projects such as the reconstruction after the devastating earthquake last year in Sichuan; the Beijing-to-Shanghai high-speed railway; the building of pipelines bringing gas from the far west to the eastern coast; and major dam projects.
China's 4 trillion yuan fiscal stimulus plan was also prone to abuse, and the auditors located 88 cases of misspending involving 198 Communist Party cadres.
"In the course of raising domestic consumption, some of the allotted money never reached its destination, and some local funds were not properly managed and regulated," Mr Liu said.
In Nanchong city in Sichuan, local leaders were warned or fired for ignoring tendering and bidding rules to award a hospital demolition project worth 2 million yuan.
On Hainan island, local water resources bureau officials colluded with contractors to write a false report about a land-conservation project, ensuring payment for the contractors for work not done.
Premier Wen Jiabao has called for greater scrutiny of public funds to prevent shoddy building, known in Chinese as " tofu construction", and vanity projects.
business@thenational.ae
COMPANY%20PROFILE
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Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
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Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Sting & Shaggy
44/876
(Interscope)
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
The bio
Who inspires you?
I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist
How do you relax?
Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.
What is favourite book?
The Perks of Being a Wallflower - I think I've read it more than 7 times
What is your favourite Arabic film?
Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki
What is favourite English film?
Mamma Mia
Best piece of advice to someone looking for a career at Google?
If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.
HAEMOGLOBIN DISORDERS EXPLAINED
Thalassaemia is part of a family of genetic conditions affecting the blood known as haemoglobin disorders.
Haemoglobin is a substance in the red blood cells that carries oxygen and a lack of it triggers anemia, leaving patients very weak, short of breath and pale.
The most severe type of the condition is typically inherited when both parents are carriers. Those patients often require regular blood transfusions - about 450 of the UAE's 2,000 thalassaemia patients - though frequent transfusions can lead to too much iron in the body and heart and liver problems.
The condition mainly affects people of Mediterranean, South Asian, South-East Asian and Middle Eastern origin. Saudi Arabia recorded 45,892 cases of carriers between 2004 and 2014.
A World Health Organisation study estimated that globally there are at least 950,000 'new carrier couples' every year and annually there are 1.33 million at-risk pregnancies.
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
The%20specs
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A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
The specs
Price: From Dh529,000
Engine: 5-litre V8
Transmission: Eight-speed auto
Power: 520hp
Torque: 625Nm
Fuel economy, combined: 12.8L/100km