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

RFA reported that August 1 was the PLA’s anniversary. PLA Daily published an opinion article on August 1 titled, “A Corrupt Military Will not Win a War.” The article expressed a vow of determination to combat corruption in the PLA. In addition to the fall of the top ranking army officials, Guo Boxiong and Xu Caihou, the article reported that two more high ranking military officials have recently been taken down from their posts. RFA’s report then provided an analysis that Xia Ming, a political science professor at the City University of New York, gave on why Xi Jinping has spread his anti-corruption efforts in the military. According to Professor Xia, the first reason is that Xi is using anti-corruption as a means to regain control over the military by using his own people. The article said that, just like Hu Jintao, Xi does not have solid control of the military. This has enabled both Guo Boxiong and Xu Caihou to build the military as their own kingdom. The second reason is the corruption in the military has been rampant. Xi intends to clean up the mess and improve the military’s fighting power.

Source: Radio Free Asia, August 2, 2015
http://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/hc-08022015125818.html

According to Xinhua News Agency on July 30, 2015, The Chinese Communist Party Central Committee’s Political Bureau expelled Guo Boxiong, former vice chairman of the Central Military Commission (CMC) from 2002 to 2012, from the Chinese Communist Party over corruption accusations. “The political bureau also decided to transfer his case and relevant evidence to military prosecutors for handling in accordance with the law.”

The punishment of Guo Boxiong demonstrates "the firm determination of the CCP Central Committee, led by current CCP general secretary Xi Jinping, to govern the Party and armed forces strictly in line with the law." The CCP Central Committee’s Political Bureau stated in its statement of July 30, 2015, “No matter what power one holds or how high one’s position is, if a person violates Party rules and the law, he or she should be hunted down without compromise and without mercy.”