China Deals Harshly with Abuse of Treasury Funds ����The Ministry of Finance (MOF) and the State Development Planning Commission (SDPC) are to stop allocating any more treasury funds to east China's Jiangxi Province because of alleged misuse of such funds. ����During a recent investigation, the MOF discovered that a number of regions in Jiangxi have defrauded the central government by establishing projects which exist in name only. ����Some regions have also diverted funds earmarked for special projects without permission from the central government. In addition, fake accounts and contracts were drawn up in order to conceal the truth. ����The MOF and SDPC decided to halt the allocation of funds for projects apart from water conservancy and others that have high level approval until these issues are cleared up. ����They have urged the provincial government to severely punish officials involved in the scams. ����They have also demanded all other regions in the country learn a lesson from these cases and strengthen their management and supervision of state funds. ����Authorities in Jiangxi province are currently investigating the cases and will be recommending action. Economicnews 1999-04-25 Page1 Full Story in Chinese