China’s state audit agency said on Monday that it has found large-scale irregularities in the nation’s public-housing program last year, including huge misappropriation of funds.
Nearly 9.4 billion yuan (US$1.5 billion) out of the 560 billion yuan earmarked for funding the affordable housing program was misused in 2014, the National Audit Office (NAO) said.
Some financing platforms as well as the home-construction and financial departments at the local government level misappropriated much of the funds, the NAO said in a report, according to the Wall Street Journal.
The funds were found to have been diverted to other purposes, including activities such as extending or paying off loans and investing in wealth-management products.
False claims also were made to gain 485 million yuan in subsidies and loans. That money was then used to pay off individual loans, and in some cases was used to build office buildings and dormitories for workers, the NAO was quoted as saying.
Looking at other problems with public housing, the auditor found 20,600 households used fraudulent documents to qualify for public-rental homes and subsidies totaling 21.9 million yuan, the report said.
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