China's auditor-general said in 2006 misappropriated government funds cost taxpayers almost 7 billion yuan, while more than 37 billion yuan was mismanaged.

In his annual audit report to China's top legislature, Li Jinhua said his auditors found that 56 central government departments had misused 1.52 billion yuan, while 434 organizations under their control misappropriated 5.35 billion yuan.

The head of the National Audit Office, said his office also found "managerial irregularities" involving 37.28 billion yuan in central government budgetary funds.

Another 2.73 billion yuan was squandered or wasted by central government departments and their subordinate agencies, Li said in his report to the Standing Committee of the National People's Congress.

Ninety-two subordinate agencies of 25 central departments, including the Ministry of Culture and the State Development and Reform Commission, were blamed for misusing 2.75 billion yuan of central budgets and special funds, accounting for 40 percent of the total misused budgets.

Thirty-three central departments, including the General Administration of Customs and the South-to-North Water Diversion Office, were also named by the chief auditor for misusing 859 million yuan.

The money was mainly used for repaying loans, infrastructure development, improper investment or daily expenditures on themselves, Li said.

Five agencies under four state departments, including the Civil Aviation Administration of China and the Ministry of Information Industry, blew budgets on office buildings or training centers. About 1.73 billion yuan was misused.

Three state departments - the State Environmental Protection Administration of China (SEPA), the State Tobacco Monopoly Administration and the Civil Aviation Administration of China - cheated a combined 84.9 million yuan of central budgetary funds by reporting fabricated projects or lying about the number of their staff.

The SEPA earned 31.2 million yuan of central budgetary funds by applying twice for the same research project, Li said.

Fifteen state departments, including the All-China Federation of Supply and Marketing Cooperatives and the Press and Publication Administration of China, earned 394 million yuan by cutting special funds, hiding their revenue or fabricating expenditures.

(Xinhua News Agency June 27, 2007)