People’s Daily reported that, from the end of May through mid-June, the State Council conducted its second inspection of 35 departments in 18 provinces on how the local municipal governments carried out the assigned tasks that the State Council gave out and how the funding was applied. The audit results from the State Council showed that certain local municipal governments violated the policy on the application or use of the funding from the State Council. The audit results revealed a number of cases of misappropriation of funds. These cases included using fake documents for deceit in relation to special funding from the State Council; local municipal government collaborating with the local business to commit deception on the subsidized funding from the State Council; violations in allocating low income homes or faking the number of completed low income projects; and illegal bidding.
Source: People’s Daily, August 2, 2015
http://politics.people.com.cn/n/2015/0802/c1001-27396844.html