Seventy Percent of China Relief Funds and Supplies Diverted

November 9, 2006 Updated: November 9, 2006

China is a country prone to natural disasters. In 2005 alone, all kinds of natural disasters caused direct economic losses of approximately RMB¥ 204,210,000,000 (about US$ 25,000,000,000), so disaster relief is imperative. However, the situation of relief funds being “plucked up like the feathers of the wild goose whenever it passes by” by all levels of the Chinese communist regime has become a very serious problem. Relief funds and supplies that the victims finally receive are tremendously reduced. Li Liguo, Vice Minister of the Ministry of Civil Affairs said that China's disaster relief work is “in a pickle.”

Disaster relief funds and supplies for China's disaster areas come mainly from two sources: one is from the communist regime and the other is from overseas donations.

Shanghai Securities News reported that on June 25 of this year, strong wind and hail damage occurred in Dali County of Sha'anxi Province, which caused the deaths of several people and very serious economic losses. Yet the Bureau of Civil Affairs of Dali County allocated relief funds twice to Kouqiao Township government for a total amount of only RMB¥ 40,000 (US$ 5,000) and assigned to the affected villagers little more than RMB¥1.00 (US$ 0.1) for each person. Some people refused the money and it is still held by the village's accountant with no way to be disbursed.

Last summer, typhoon “David” caused huge losses to Hainan Province. Disaster survivors in Xinchao Village, Qionghai Tanmen Township of Hainan Province only received eight liang (about 13 ounces) of “Relief Rice.” The villagers from nearby Shagang Village at Wenchang City received only three liang (4.6 ounces) of “Relief Rice” for each person. It is estimated that the local area was short of rice supplies for eight months.

When a flood disaster occurred in Weinan City of Sha'anxi Province two years ago, the State Development and Reform Commission allocated RMB¥ 59,060,000 (about US$ 7,000,000) but the victims eventually only received RMB¥ 500,000 (about US$ 60,000) with 99 percent of the relief funds held back and misappropriated by all levels of the Chinese regime. After the earthquake in Yunnan Province last year, the whole province received relief supplies for a total amount of more than RMB¥ 360,000,000 (about US$ 40,000,000) but almost RMB¥ 100,000,000 (about US$ 12,000,000) was kept for other purposes.

Reportedly, Chinese experts estimate that 50 to 70 percent of relief funds for China have been misappropriated and embezzled. The serious situation of relief fund misappropriation, embezzlement and corruption also greatly discourages the initiatives of non-governmental donations.

The report pointed out that the root of the problem with China's disaster relief is difficult because some local governments and related departments frequently divert the relief funds.