China intensifies crackdown on 'small coffers'

(Xinhua)
Updated: 2009-08-23 16:00

BEIJING: China's top discipline watchdog released Sunday detailed penalties for officials who illegally hold "small coffers" as its latest drive to fight corruption.

According to a circular issued by the Communist Party of China (CPC) Central Commission for Discipline Inspection (CCDI), officials would be punished in accordance with the CPC's internal supervision regulations published in 2004.

"Small coffer", an illegal practice regarded as a "cancer" by the CPC, refers to fund, securities and assets that should be but fail to be listed into the account books of CPC and government organizations in accordance with relevant laws and regulations, the circular reads.

Previously, the CPC did not give a formal definition on "small coffer" and only gave principal directions on its punishment.

Officials who illegally set up "small coffers," use the money to build or renovate office buildings, raise subsidy standard or deliver excessive bonus for staff would receive punishments ranging from inner-Party warnings to being stripped of CPC membership, according to the circular.

Officials who use "small coffer" funds on traveling, gala dinners and other recreational activities would be given similar punishment for "splurging common property," it said.

It encouraged all units concerned to check the problem by themselves and those that pretend to do so, or try to boycott the move or retaliate against the tippers will be severely punished in accordance with the CPC internal supervision regulations.

Those who set up small coffers after the CPC launched the campaign to crackdown the illegal practice early this year would be removed from post, it said.

Chinese authorities launched a campaign to crack down on "small coffers" earlier this year.

In 2009, the campaign would mainly target CPC and government departments that completely rely on the budgetary funds, according to the CCDI. It would later be extended to all social institutions, state-run companies, and state-holding companies.

"Specifying punishment will help intensify the crackdown and make it more maneuverable," the CCDI said.

In some areas and departments, the practice of having "small coffers" has occurred frequently or even seriously. "The masses have responded to it strongly," the CCDI said.

The illegal practice has resulted in "inaccuracy in accounting, disturbance in market order, losses in state income and property and corruption," it said.

To guide the campaign, the authorities have set up a special leading group with members from the CCDI, the Ministry of Supervision, the Ministry of Finance, and the State Auditing Administration.