Tags: china | fraud | housing | li

China Finds Nearly $1B in Abuses in Affordable Housing Program

Friday, 09 Aug 2013 05:58 AM

BEIJING — A Chinese audit concluded that the equivalent of $947 million was misappropriated from an affordable-housing program that Premier Li Keqiang said would provide a test of the government’s credibility.

Funds from 360 projects were diverted to pay back loans or make outside investments, while money designated to pay for demolitions was used to start other construction, the National Audit Office said in a report posted on its website today.

The audit’s findings draw new scrutiny to a program that was designed to reduce the risk of real-estate bubbles and ease discontent among the poor. In February 2012, when Li was vice premier, he called on the public to supervise the government’s push to distribute affordable housing in a fair way.

Li’s predecessor as premier, Wen Jiabao, pledged in 2011 that the government would build as many as 36 million affordable-housing units within five years. The audit found that 38,900 units had been distributed in violation of the rules, and abuses included people providing false information and families receiving multiple houses.

In one case cited by the audit, a property company in the Inner Mongolia city of Ordos spent money meant for affordable housing on advertising and sales expenses for property projects. The money was later returned, it said.

The report said local governments had paid “great attention” to problems pointed out by the auditors.

“Overall, the situation is quite good, but the audit found that there exist problems of violating the rules and substandard management in some affordable-housing projects,” it said.

Before becoming premier in March, Li had championed affordable housing as a way to stabilize the housing market and boost supply.

“Fair distribution of the houses is the lifeblood for the success and sustainable development of the program,” Li said in February 2012, according to the official Xinhua News Agency.

The government has encouraged the use of bank loans and bond sales to fund affordable housing, and a total of 466.8 billion yuan of funds was raised through bank loans, bonds and other forms of social financing, today’s notice said.

Almost 20,000 auditors were deployed to 31 provinces starting last November to check the program’s progress, today’s report said.


 

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Asia
A Chinese audit concluded that the equivalent of $947 million was misappropriated from an affordable-housing program that Premier Li Keqiang said would provide a test of the government’s credibility.
china,fraud,housing,li
361
2013-58-09
Friday, 09 Aug 2013 05:58 AM
Newsmax Inc.
 
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved