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Low-income Subsidy Fraud in China

According to Jiancha Daily, fraud in the low-income subsidy program has been rampant throughout China. 

Early this year, a cleanup campaign in Xuzhou City, Jiangsu Province resulted in the stoppage of low-income subsidies to 17,479 who did not meet the eligibility requirements. At the same time, the eligibility of 8,159 persons was approved so they could start to receive the 2014 low-income subsidies. Similarly, in the first quarter, Dongfang City removed 1,265 from the low-income subsidy recipient list and added 1,477 to the list. At the end of May, Ha’erbin City stopped payments to 7,470 who were not eligible and accepted 1,706 for payments of low-income subsidies. In June, Leiyang City in Hunan Province also found 402 of the current recipients to be ineligible. 

According to the 2012 Social Security Green Book released by the China Academy of Social Sciences (CASS) in 2013, close to 80 percent of the households surveyed that were at the poverty level did not receive a low income subsidy. The results also revealed that over 60 percent of those that received a low income subsidy were not households at the poverty level. The survey was conducted in five provinces including Anhui and Fujian. 
Source: Jiancha Daily, June 23, 2014