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Stimulus spending monitored nationwide

By Wang Linyan (China Daily)
Updated: 2009-04-06 08:50

To prevent fraud in the use of its multi-trillion-yuan stimulus package, the central government sent out 24 inspection teams nationwide last week to oversee how the money is being spent.

During the month-long investigation, the teams will set up operations at local government offices to monitor spending, as well as check on projects throughout the provinces, Wen Wei Po reported.

The Chinese public has been concerned over possible fund misuse and corruption since the announcement in November of the 4-trillion yuan ($586 billion) package. The package includes a central government infusion of 1.18 trillion yuan, plus further financing coming in the form of industrial restructuring, tax reform, scientific innovation, social welfare and creating employment.

Premier Wen Jiabao vowed in March that the government would oversee use of the funds.

Experts said the large-scale investigation will provide a foundation for the next stage in the government's battle against the financial crisis.

Related readings:  Economist: Export plunge may offset 4t yuan stimulus package  Auditor vows to closely monitor stimulus projects  Govt's stimulus steps prove effective  China's stimulus plan a great contribution to world

Since late March, government agencies including the National Development and Reform Commission (NDRC), the People's Bank of China and the Ministry of Commerce have sent inspection teams nationwide to supervise the implementation of stimulus policies.

Minister of Commerce Chen Deming led a research team looking into household appliance stores, supermarkets and farm produce markets in Guiyang and Zuiyi in Guizhou province.

He said the ministry would help Guizhou develop its service industry and build infrastructure for supermarkets and wholesale markets for farm produce in order to stimulate the local economy.

From last November to January this year, 24 central government inspection teams were sent to look into the use of the funds by the Communist Party of China central commission for discipline inspection, the NDRC, the Ministry of Supervision, the Ministry of Finance and the National Audit Office. They found no evidence of bribery or embezzlement, or that funds were misused for setting up energy intensive or heavily polluting projects or constructing Party or government office buildings.