Corruption may plague China's massive stimulus bill

When transportation spending increases, so do the worries.

China has been trying to calm its citizens amid rumors that money from its $586 billion stimulus bill might be stolen or wasted, according to an Associated Press report. The massive spending plan was launched last November to boost highway construction and other public works projects. The central government so far has spent $42 billion.

An audit found that some officials spent without the proper approval or failed to keep accurate records of the spending. At a press conference on May 27, officials from the Finance Ministry and the Cabinet’s planning and audit agencies gave no details of individual cases, the identities of the accused officials or what punishment they would face.

“There are some serious problems, and for those serious violations we have urged the related departments to issue strict punishment,” Wang Wei, a member of the Communist Party’s Central Commission for Discipline Inspection, said at a news conference. “Generally, the implementation is good.”

Back when the plan was announced, a group in the Communist Party warned of such abuse in a system that is already plagued by corruption.