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Audit Uncovers Massive Accounting Fraud
South China's Hainan Province uncovered fraudulent accounting practices involving 1.66 billion yuan (US$200 million) while auditing a total of 610 projects in 2002.

The auditors helped recover 116 million yuan (US$13.97 million) for the local fiscal revenue, and 10 persons involved in the cases have been sent to the local judiciary and discipline inspection commission for punishment.

Of the total amount of fraudulent funds, 446 million yuan (US$53.7 million) was discovered in administrative units and enterprises, and 148 million yuan (US$17.83 million) was detected in 26 key projects and overseas-financed projects.

More than 31 million yuan (US$3.73 million) in fraudulent funds was detected in 13 projects financed by loans from the World Bank, the Bank of Asia, and overseas governments.

An additional 570 million yuan (US$68.67 million) was discovered following an examination of the accounts of 62 state-run enterprises.

(Xinhua News Agency March 26, 2003)

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