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Pollution funds diverted

By Wang Jingqiong (China Daily)
Updated: 2009-10-29 08:16

Hundreds of millions of dollars designated for pollution control and prevention never reached its target because of embezzlement and fraud, a National Audit Office report said yesterday.

The report said $535 million that should have been used in waste water treatment and pollution discharge was embezzled, intercepted or not levied, while 10 provinces had unused assets for water pollution projects worth $117 million.

Local government departments in 13 provinces embezzled or made fraudulent claims for $75 million for water pollution prevention and control between 2001 and 2007, the report said.

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It stated that water quality of the Liao, Huai and Hai rivers, and Tai, Chao and Dian lakes is still poor because of environmental changes, social development, economic increases, and the misuse and mismanagement of funds for water pollution prevention and control.

The audit report covers 13 provinces, municipalities and autonomous regions within the rivers' and lakes' basin, including Beijing, and Liaoning and Jiangsu provinces.

Government departments from seven provinces and municipalities embezzeled $59 million, while departments from four provinces claimed $16 million through fake projects and investments.

In addition, 206 wastewater treatment plants were found to not be up to standard.