Ouyang Hongliang reports in the Caijing magazine:
A state audit has uncovered no evidence of widespread fraud tied to a massive relief effort for the millions of survivors of southwest China’s May 12 earthquake.
But the National Audit Office report June 24 found that only 19 percent of the cash donations funneled through central and local government agencies had reached quake regions, and said some hard-hit areas were still waiting for assistance a full month after the disaster.
The chief auditor concluded that, based on the obvious weakness in quake-assistance management, China needs a standard system for managing donations during disaster relief operations.
The audit found that 81 percent, or 24 billion yuan, of the donated money collected by governments from domestic and international contributors had failed to reach relevant offices handling relief efforts, including those in quake-hit areas. Governments altogether received some 45 billion yuan in cash and goods from donors.